Mexico’s government has significantly reduced its economic growth forecast for 2025, citing uncertainty surrounding tariffs that are expected to be imposed by former President Donald Trump.
On Wednesday, Trump is anticipated to announce sweeping tariffs on all countries that impose taxes on American imports, adding to existing levies on steel and aluminum, just before new tariffs are imposed on cars entering the US.
With over 80% of Mexico’s exports going to the United States, it remains the country’s largest trading partner. Many factories in Mexico assemble vehicles for global companies like Ford, General Motors, BMW, Volkswagen, and Toyota.
The Mexican finance ministry has revised its growth forecast to a range of 1.5% to 2.3%, down from the previous expectation of 2.0% to 3.0% announced in November.
The ministry cited “an uncertain external environment due to global trade tensions and geopolitical conflicts” as a major factor in the downward revision.
Mexico’s central bank had already reduced its forecast, projecting a growth of just 0.6% due to ongoing uncertainty stemming from Washington.
President Claudia Sheinbaum stated on Tuesday that she does not support an “eye for an eye” approach when it comes to retaliating against potential US tariffs.
