The threat of a 25 percent tariff on Mexico, from which it is currently exempt for one month until April 2, could cause a collapse of between 3.5 and 5 percent of the Gross Domestic Product (GDP) of the construction sector and increase project costs by up to 10 percent. This was expressed by Luis Méndez Jaled, president of the Mexican Chamber of the Construction Industry (CMIC), during the inauguration to renew the leadership from 2025 to 2026.
In this regard, Méndez Jaled mentioned: "It's a rather significant issue because there are many inputs such as steel, cement, aluminum, and other components that, if something happens which our president is defending does not happen, we could face a drop of 3 to 5 percent of the GDP." He highlighted that the one-month pause on tariffs is positive for all products under the T-MEC; however, if applied after this period, we could see an increase in project costs between 3 and 10 percent.
Specifically, he explained that in housing it could mean an increase of between 3 and 4 percent, in construction up to a 5 percent increase, and in infrastructure a possible 10 percent, as most of these projects heavily rely on components that are currently at risk due to tariffs.
Despite the uncertainty, the construction industry in Mexico remains active in terms of investments, prioritizing projects such as roads, ports, airports, and trains with government support, generating up to 5 million jobs in the process. Méndez Jaled emphasized the importance of economic certainty for investment and advocated for a continuous increase in the budget allocated to this sector.
Additionally, he celebrated the opening of the Ministry of Infrastructure, Communications and Transport (SICT) to promote proposals for mixed investment projects in administration, which will allow for greater private sector participation in the development and execution of infrastructure in the country.
