Mexican Billionaire Carlos Slim Is Biggest Winner Amid Tariff Rout

Key Concepts:

• Tariffs (specifically those imposed by President Trump)
• Stock Indices
• Billionaire Wealth Fluctuation
• Privatization (Telmex)
• Nearshoring
• Macroeconomic Impact

Carlos Slim's Fortune Increase

On a day when global stock indices declined due to President Trump's new tariffs, Mexican billionaire Carlos Slim Helú's fortune increased by $2.1 billion, making him the biggest billionaire gainer globally on that Thursday. His net worth is now estimated at $84.3 billion according to Forbes.

Background on Carlos Slim

Slim, a descendant of Lebanese immigrants, has built his fortune over six decades through investments in mining, retailing, infrastructure, and heavy industry.

Telmex Privatization and América Móvil

In 1990, Slim's conglomerate, Grupo Carso, led a $1.8 billion privatization of Mexico's state-owned telecom company, Telmex, with partners France Telecom and Southwestern Bell (now part of AT&T). In 2011, Telmex became part of América Móvil, which was an expanded version of Telmex's cellular arm.

Historical Ranking

Slim, age 85, was once ranked as the world's richest person on Forbes's World Billionaires list, holding the spot for four years from 2010 to 2013. His fortune has since been surpassed by Bill Gates, Jeff Bezos, and Elon Musk.

Impact of Trump's Tariffs

Trump's announcement of new tariffs led the S&P 500 to tumble 4%. However, Mexico was not subject to additional tariffs. Trump had previously announced a 25% tariff on imported autos, which does not affect Mexico. An earlier threat to impose 25% tariffs on all goods from Mexico, announced on March 3rd, was largely paused by the US president several days later.

Factors Contributing to Slim's Gains

Slim's fortune was boosted by gains in two of his biggest holdings: telecom firm América Móvil and industrial conglomerate Grupo Carso.

Analyst Perspective

Alejandro Gayostra, a telecom analyst at BBVA, stated that "The positive impact on Mexico overall is more of a macroeconomic issue. It has to do with the relative effect of tariffs on Mexico compared to the rest of the world. It looks like Mexico could continue to be an important partner for the US despite everything relatively speaking and that could reignite nearshoring in Mexico."

Nearshoring Explained

Nearshoring refers to the practice of relocating business operations to a nearby country, often to reduce costs and improve efficiency. In this context, the analyst suggests that Mexico's relative advantage in the face of global tariffs could lead to increased nearshoring activities.

Conclusion

Carlos Slim's significant wealth increase occurred on a day of global market downturns due to Trump's tariffs. This was attributed to Mexico not being subject to the new tariffs and the gains in Slim's major holdings, América Móvil and Grupo Carso. Analysts suggest that Mexico's position could lead to increased nearshoring, further benefiting the Mexican economy.