New Delhi, Aug. 5 -- The world is watching Mexico, not because of the 5.7 magnitude earthquake that has struck its Oaxaca region, or the prison riots in Veracruz that have claimed several lives. Such disturbances are not uncommon in the region. Instead, global attention is fixed on Mexico because it alone has secured a 90-day window to finalize tariff terms with the US, even after the 1 August deadline has expired.

This rare grace period is significant: it will delay investment decisions in many countries that export to the US and stall tariff-jumping investments into the US itself. Investors are in wait-and-watch mode.

At present, Mexican exports of steel and copper to the US are subject to a 50% duty, just like similar imports from el...