An economic expert is claiming that Mexico is breathing a "big sigh of relief" after U.S. President Donald Trump's tariff announcement, analyzing that the country is so far managing to avoid the full wrath of the decision.
Sergio Luna, chief economist of Grupo Financiero Mifel, noted in Americas Quarterly that the country and Canada are "just" seeing 25% tariffs on imports not covered by the USMCA. That led the country's currency, the peso, to be the third-best performer versus the U.S. dollar on Wednesday after Trump's announcement.
Luna did acknowledge that the country will be worse off than before the announcement, highlighting that the country has a "very open economy," which is "heavily reliant on global value chains that are geared to the U.S., the destination of 80% of Mexican exports.
Therefore, he explained, all decisions affecting the trade system and the health of the U.S. economy will have an impact on the country.
Down at the border, the perspective is more grim, as workers at factories operated by foreign companies fret for their livelihood. Speaking to AFP, Raul Hernandez said the businesses "support families" and that "if the plants really stop because of tariffs, it will hurt Mexico and the Mexican people."
Mexican President Claudia Sheinbaum anticipated the country will focus on a plan to develop the country's economy, boosting domestic industries and creating jobs as a result. She has sought an amicable relation with the Trump administration and is likely to refrain from imposing counter-measures.
"There can always be tariffs on one country or the other, but what's most important to me, my responsibility as president, is the people of Mexico and that of course is tied with the relations with the U.S.," she said on Tuesday.
"We are ready. There is a plan and we will wait and see, but we don't believe in an eye for an eye, a tooth for a tooth, because that always leads to bad situations," she added.
© 2025 Latin Times. All rights reserved. Do not reproduce without permission.
