China and Mexico get closer

It may come as a surprise to President Trump and his bellicose compatriots in the White House - Steve Bannon, Stephen Miller and Sean Spicer - but in regard to Mexico, that country has an ace up its sleeve when it comes to dealing with the United States on trade: China. Mexico has been the object of Trump's "affections" dating to early in the last presidential campaign. Building a wall to stop illegal immigration along our southern border was a signature promise Trump made to his followers. The promise was made all the more emphatic by Trump's calling Mexicans rapists and criminals. As well, the president-to-be repeatedly attacked the North American Free Trade Agreement (NAFTA), calling the people who negotiated it "stupid." The fact is, Mexico is our third largest trading partner. In 2015, goods exported to Mexico totaled $236 billion; goods imported totaled $295 billion. As such, the U.S. goods trade deficit with Mexico was $58 billion for that year. Bad? Not really. According to Dan Primack of Fortune, "Last year's U.S.-Mexico trade deficit represented 22.4 percent of all U.S. exports to Mexico. ... Back in 1985, one of those 'great' years to which Trump hopes to return, the (then) $5.5 billion trade deficit represented 40.3 percent of all U.S. exports to Mexico." From my vantage point, the numbers appear to be moving in the right direction already. Given the administration's apparent inability to understand the importance of our relationship with our trading partner to the south, and given Trump's long and continued intent to insult and humiliate that country and its leaders (threatening in a phone call with his Mexican counterpart to send U.S. troops to stop "bad hombres down there"), it's interesting to watch as the Chinese (among others) already are moving in to fill the void left by the United States.