“This is not a good event here,” Gutierrez added. “He’s not going to back away from his instincts, and his instincts are left-wing, populist, anti-multinational (companies), nationalist.”

The U.S. and Mexico’s trade relationship has grown more strained in recent weeks after Mexico placed tariffs on several U.S. agricultural products, like pork, cheese and apples, in retaliation for U.S. levies on Mexican made steel and aluminum products.

While AMLO quickly gained popularity on his pledge that “the country will be cleansed” of corruption, market watchers dumped Mexican equities on fears that the new president’s policies could cripple the economy. AMLO said on the campaign trail hat he would roll back privatization in the country’s oil industry and double pensions for the elderly.

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