Mexico Faces Economic Challenges Due to US Tariffs

The recent confirmation of US tariffs on Mexican products threatens the local economies of states like Chihuahua, Coahuila, and Baja California, which heavily rely on exports to the US. The economic impact could lead to significant instability as these states face potential losses exceeding their GDP.


Mexico Faces Economic Challenges Due to US Tariffs

Trade between Mexico and the United States is affected by the imposition of tariffs on Mexican products. According to data from Inegi, regions like Chihuahua will be the most impacted, as their exports to the United States represent up to 144.6% of their state Gross Domestic Product (GDP). This measure may lead several Mexican states to bankruptcy.

Other entities such as Coahuila and Baja California also rely heavily on trade with the United States, making them vulnerable to the imposed tariffs. In contrast, Quintana Roo, Mexico City, and Nayarit are among the least affected by this situation.

President Donald Trump confirmed that starting from a certain date, tariffs of 25% on Mexican and Canadian products will begin to be applied in the United States. Despite ongoing negotiations, the president indicated that there will be no extension in the imposition of tariffs.

The impact of the tariffs on the Mexican economy will not be homogeneous, according to Grupo Financiero BASE. States like Coahuila will be particularly affected, as their exports represent more than 100% of their GDP. Despite concerns, there are expectations that the tariffs will not come into effect, as shown by the moderate movements in the exchange rate.

There is speculation about possible exemptions from tariff charges, such as the exclusion of low-value products. Uncertainty persists regarding the actual application of the tariffs and their scope. Despite trade tensions between the two countries, there is still no definitive confirmation regarding the implementation of the tariffs.