The immediate impact of the outburst of violence in Mexico following the killing of drug kingpin “El Mencho” is likely to be a hit to tourism. But the longer the unrest drags on, the bigger the risk that it disrupts manufacturing too, especially of electronics and semiconductors – a lot of which takes place in the heavily-affected state of Jalisco. Beyond the macro implications, the killing shows that Mexico’s government is doing what it can to appease the Trump administration ahead of this year’s USMCA review.
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