Mexico lowers 2025 growth forecast on trade war fears

BSS
Published On: 02 Apr 2025, 11:07

 MEXICO CITY, April 2, 2025 (BSS/AFP) - 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 to potential US tariffs.

General Motors (isin = US37045V1008)

BAYERISCHE MOTOREN WERKE AG (isin = DE0005190003)

Volkswagen (isin = DE0007664005)

TOYOTA MOTOR (isin = JP3633400001)

FORD MOTOR (isin = US3453708600)

 

  • Latest
  • Most Viewed
Expatriates' remittance helps revive Bangladesh's economy: CA
Brevis smashes record ton as South Africa level T20 series
Falsehood being made against BNP: Fakhrul
Price fall in large-cap drives stocks down
Palestinian envoy pays courtesy call on Chief Justice
Low-lying areas inundated in Rajshahi as water in Padma rises
Salehuddin describes past one year’s of economic performances satisfactory
Ex-DUCSU VP Prof Mahfuza Khanam passes away
Former Premier League referee Coote given eight-week ban over Klopp comments
Major Sadikul’s wife Zafrin gives confessional statement over secret meeting
১০