Donald Trump's threats this week to impose tariffs on imports of cars and agricultural equipment from Mexico highlight how big a risk his return to the White House would pose to Mexico’s free trade relationship with the US. Navigating cross-border relations will be one of the key challenges for President-elect Claudia Sheinbaum, who takes office on Tuesday. But it's not the only one; she’ll also need to take steps to put Mexico's public finances back on a stable footing as well as deal with the fallout from outgoing President López Obrador’s constitutional amendments. Elsewhere, Colombia's recent budget drama supports our view that public finance risks there are likely to remain in the spotlight.
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