In a recent conference held in Mexico City, Carlos Slim, Mexico's wealthiest man and a global business magnate, offered his perspectives on U.S. President Donald Trump’s second term. Slim, known for his vast empire spanning telecommunications, construction, and retail, focused particularly on economic strategies and international relations that could redefine the U.S.'s global standing.
Slim opened the dialogue by acknowledging the complexity of the situation Trump faces in his renewed leadership role. “There’s a lot to do. He only has four years,” Slim remarked, underlining the urgency with which Trump must act if he wishes to make substantial changes.
One significant aspect Slim highlighted was the necessity for the United States to regain its global leadership. He suggested that a dual strategic approach could be beneficial—reducing costs while simultaneously channeling investments into vital growth sectors. According to Slim, such a balanced act could stimulate both domestic progress and international influence.
Regarding Trump’s economic tactics, Slim firmly stood against the use of tariffs as a means of negotiation. “Tariffs increase inflation … the interest rate doesn’t go down,” he pointed out, emphasizing that tariffs are merely temporary solutions that don't address long-term economic challenges. Instead, he advocated for fostering strong, bilateral agreements that strengthen ties without imposing unnecessary economic burdens.
The discussion also touched on a recent announcement from Trump involving a 25% tariff setback on steel and aluminum imports. Slim predicted minimal impact on Mexico due to these tariffs, illustrating that several Mexican steel companies operate across the U.S. This co-existence within the industries reduces potential negative ramifications.
Slim also provided insight into the broader economic challenges faced by the U.S. “The United States stopped producing things,” he commented, referring to the extensive outsourcing that has overshadowed American manufacturing. He championed initiatives that promote domestic production, citing the semiconductor industry's resurgence as a case where U.S.-based manufacturing could flourish.
Slim expressed skepticism about corporate tax reductions as a sole method for enticing businesses back to U.S. soil. Instead, he urged the creation of a nationalistic narrative encouraging multinational corporations to recognize and invest in their homeland.
Touching on global wealth distribution, Slim dismissed the notion of taxing the world’s largest fortunes, advocating instead for job creation over mere philanthropy. “The trick is that people work,” he stated, stressing the importance of sustainable economic growth through employment.
Interestingly, Slim noted his cautious stance towards high-stakes investments, like those of tech innovator Elon Musk, despite agreeing with some of Musk’s visionary ideas. Business strategies, Slim advocates, should combine innovation with calculated risk to ensure long-term stability.
On matters of national security, Slim recommends heightened security at the U.S.-Mexico border as crucial. His proposal involves robust operations on both sides to prevent the smuggling of illegal substances and arms, supporting a safer bilateral environment.
The conference provided a platform for Slim to share his vision for a nuanced, strategic approach to economic policy under Trump's administration, emphasizing the importance of collaboration, innovation, and sustainability.
