Mexico lowers 2025 growth forecast on trade war fears

Date:

Share post:

Mexico’s government on Tuesday sharply lowered its economic growth forecast for 2025, citing uncertainty over American tariffs set to be imposed by Donald Trump.

The US president is expected to reveal Wednesday the shape of sweeping tariffs against all countries that tax American imports — adding to his new levies on steel and aluminum and just before additional ones hit cars entering the country.

More than 80 percent of Mexican imports go to its northern neighbor, making the country America’s biggest trading partner.

Many factories south of the border assemble vehicles for foreign firms like Ford, General Motors, BMW, Volkswagen or Toyota.

The Mexican finance ministry said that it was lowering its growth forecast to a range of 1.5 to 2.3 percent — down from the 2.0 to 3.0 percent hoped for last November.

It pointed to “an uncertain external environment given global trade tensions and geopolitical conflicts.”

Mexico’s central bank had earlier also revised its forecast downwards, halving it to 0.6 percent growth over “uncertainty” emanating from Washington.

President Claudia Sheinbaum said Tuesday that she did not believe in an “eye for an eye” approach to retaliating against potential US tariffs.

AFP

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img

Related articles

My reign will enthrone peace, unity -Nsukka traditional ruler

Nsukka, Nigeria - HRH Igwe Ejike Asadu, the Traditional Ruler of Umuoye Community in Nsukka Local Government Area...

HEDA urges fairness and integrity in Nigeria’s Judicial system

A new report by the Human and Environmental Development Agenda (HEDA Resource Centre) has called for a judicial...

Insecurity: Waking those who do not know what it means to be Awake

By Ayisha Osori April 14 was the anniversary of the abduction of the Chibok girls from a Government Girls...

C’River: Otu introduces ‘Jesus Carnival’ into State Tourism Calendar

By Dianabasi Effiong The Cross River State Government has introduced a new annual event into its tourism calendar. A statement...