How would a sudden jump in US prices affect import from Mexico?

A jump in US prices would have a few different effects on imports from Mexico.

First, it would make Mexican goods more expensive in the United States, which would lead to a decrease in imports from Mexico. This is because, all other things being equal, as the price of goods from Mexico increases, the cost of purchasing those goods also increases, thereby decreasing demand for them in the US.

Second, it would make it more difficult for Mexican companies to compete with American companies, which could lead to a further decrease in imports from Mexico. Suppose Mexican companies continue to charge the same prices for their products despite the increase in US prices; in that case, their products will become more expensive relative to American goods, making US consumers more likely to purchase American-made goods.

Third, it would put upward pressure on inflation in Mexico. This is because the cost of goods would rise in Mexico, leading to an increase in the overall price level.

These are just a few of the potential effects that a jump in US prices could have on imports from Mexico. The specific impact would depend on the magnitude of the price change and the ability of Mexican companies to adjust to the new conditions.