This is CBS Eye on the World.

Here's John Batchelor.

I welcome Professor Avan Ellis, U.S. Army War College Strategic Studies Institute,

who's been on the road just returned from Mexico.

We're looking at Mexico and the economy of

North America in general as it relates to South America, the New World Report. The news from Mexico

is not positive. Mexico's economy appears on track to contract in the first quarter, entering a technical recession following the on-again, off-again tariffs, which have caused havoc in the Mexican planning.

The quote from a senior strategist for XP investments, the damage is already done.

Maybe there's a slight recovery in the second quarter, but this quarter is lost. Evan, a very good evening to you. The economies of North

America are wrapped up into the relationship between the U.S. and Mexico, number one,

trade partner for Mexico, and certainly a great deal of our industries depend on parts flowing through Mexico. Number one trade partner for Mexico, and certainly a great deal of our industries

depend on parts flowing through Mexico, not to forget the food, the avocados, and the strawberries.

So is there talk of recession in Mexico City? Is it a consideration as they answer the tariff threat? I know there's what you'd have to say,

new but profligate use of the word recession on Wall Street. How is it in Mexico? Good evening to you.

Good evening to you, John. Ironically, Mexico is celebrating what was seen as a victory by Claudia Shinebomb this

past Sunday in escaping President Trump's threats of tariffs at least until April. And although

that was seen as something that elevated her popularity and contributed to what was supposed to be

an anti-U.S. rally around sanctions in

Mexico's principal square in the Zocalo in Mexico City, turning into a celebration of

her achievement. However, behind that is an understanding that because of Mexico's strong

dependence on the U.S. market, by one estimate estimate approximately 80% of all Mexican exports go to the United States.

And so the threats of not only tariffs on Mexican steel and other products, but a broader trade war,

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