How a U.S.-Mexican war would affect retailers

In late January 2017, a dispute between the U.S. and Mexico erupted, as Donald Trump plans to make Mexico pay for the construction of a wall along the border, which could be financed by a 20% tariff on Mexican imports. The White House said that this 20% tax on goods across the border was among a “buffet of options”, which also include a tax reform and fines on illegal migrants coming to the U.S.

Such a tax may have adverse effects for the retail sector. Indeed, Mexico is the 3^rd largest...