Economics
Recession Looms for Mexico With Trump Threatening New Tariffs
- Latin America’s second-largest economy to take ‘big hit’
- Banxico may hike interest rates to fight higher risk: BofA
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A surprise tariff threat couldn’t have come at a worse time for Mexico’s already shrinking economy.
The move could tip Mexico into a recession, and at the same time force the central bank to boost interest rates to rein in inflation. In a country highly dependent on exports, it’s no surprise that U.S. President Donald Trump’s plans to slap tariffs as high as 25% on all imports by October sent shockwaves through Mexican business and political circles.