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#AdiosProductosGringos: Border Wall Backlash Leads Mexicans To Boycott American Products

#AdiosProductosGringos: Border Wall Backlash Leads Mexicans To Boycott American Products

Mexican consumers have taken to Twitter Inc (NYSE: TWTR) to retaliate against President Donald Trump’s proposed border wall and tariff.

Since January 26, the hashtag #AdiosProductosGringos has circulated to promote a national boycott of American imports. And as the second largest consumer of exported American goods, Mexico may have struck an Achilles heel.

Who Is About To Get Hurt?

According to the Office of the United States Trade Representative, Mexico consumed $236 billion in U.S. goods in 2015 — or 15.7 percent of American exports.

Of this total, machinery made up $42 billion, electrical machinery $41 billion, vehicles $22 billion, mineral fuels $19 billion and plastics $17 billion.

A boycott could harm related corporations such as Caterpillar Inc. (NYSE: CAT) and General Motors Company (NYSE: GM), the latter of which considers Mexico its largest foreign customer. GM vehicle exports to Mexico totaled 16,420 in 2014.

With a charge of $18 billion, Mexico has also been the United States’ third largest consumer of agricultural products. The most popular exports have been corn, soybean, dairy, pork and beef, which each shipped out for more than $1 billion. Companies such as Tyson Foods, Inc. (NYSE: TSN) and Cal-Maine Foods Inc (NASDAQ: CALM) stand to lose from a boycott.

Travel, transportation, computer software and other service-related sectors brought in another $30.8 billion to the U.S. Industry pressure could impact earnings for companies such as AutoZone, Inc. (NYSE: AZO), FedEx Corporation (NYSE: FDX) and AOL, Inc. (NYSE: AOL).

The Convenient Victims

Depending on the size of the boycott, entire industries could suffer. But it seems that specific companies might be targeted.

Some Twitter posts included memes featuring products from Kate Spade & Co (NYSE: KATE) and Starbucks Corporation (NASDAQ: SBUX), while others compiled dozens of company logos from McDonald’s Corporation (NYSE: MCD) to Delta Air Lines, Inc. (NYSE: DAL).

Notably, as of 2011, some of the largest American retail chains in Mexico were Wal-Mart Stores Inc (NYSE: WMT), American Eagle Outfitters (NYSE: AEO), Gap Inc (NYSE: GPS) and Sears Holdings Corp (NASDAQ: SHLD).


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