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Mexico's Economy Is at the Mercy of the Trump Administration

Mexico's economy will take a significant hit if President Trump makes good on some of this trade threats.

Mexico is at the mercy of President Trump, says one expert, and the country doesn't have much leverage if NAFTA is renegotiated or if a tax is levied on its exports.  Carlos Petersen, an associate at Eurasia Group with a focus on Latin America, notes that 80% of Mexico's exports go to the U.S. and its economy could take a significant hit.  

Petersen says the peso will continue to remain under pressure, and he couldn't rule out potential downgrades of the country's debt.

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