The Trade War Next Door: U.S. Tariffs and Mexico's Dilemma

For years, the U.S. enjoyed the spoils of globalization—outsourcing production to lower-cost countries, reaping the rewards of cheap labor, and keeping consumer prices down.

Trade wars are no longer just about distant countries battling over steel and semiconductors; they're happening right next door. The United States and Mexico, longtime economic partners, are now caught in a tense standoff over tariffs. As Mr. Trump tightens the screws on imports, Mexico scrambles to adjust. But is this strategy a win for the U.S., or ju…