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Markets: Trump all bark, no bite on NAFTA

One of the biggest losers in the immediate wake of the 2016 election was the Mexican peso, as investors feared that a a swift NAFTA renegotiation and other protectionist policies promised by Trump would hurt the Mexican economy most. But the peso has since reversed those losses, gaining more than 12% since inauguration day.

Data: Money.net; Chart: Andrew Witherspoon / Axios

Why it matters: Investors have realized that there are formidable institutional hurdles to the sort of radical reform of trade deals and the tax code that would hurt Mexico the most. The border adjustment tax favored by the president has little support in the Senate, while the Trump Administration has signaled through a lack of swift action on NAFTA reform that the president will judiciously use his broad powers on trade and tariffs.