Strong Mexico Ties Have Companies Gird for Trump Aftershocks
- Changing NAFTA could spell trouble for Constellation, Horton
- A weaker peso may hurt companies operating in Mexico
Companies with deep ties to Mexico -- from Corona beer importer Constellation Brands Inc. to Ford Motor Co. and homebuilder D.R. Horton Inc. -- are reeling after Donald Trump’s unexpected election as the 45th U.S. president.
Trump campaigned on vows to build a wall along the southern border, deport millions of Hispanic immigrants, dismantle the North American Free Trade Agreement and ignite a trade war with Mexico. That doesn’t bode well for companies like Kansas City Southern and Union Pacific Corp., whose railroads haul goods between Mexico and Canada on the so-called NAFTA highway. Mexico sends almost 80 percent of its exports to the U.S. It’s also not good for firms like Constellation, which counts Hispanic immigrants among its most loyal customers.