Financial markets are experiencing a period of instability marked by significant losses. The Nasdaq has fallen by 7.9% recently, while the S&P 500 has decreased by 4.3% compared to the level before Trump came to power. This has raised doubts about the current U.S. president's policies and his supposed drive for business growth in the country.
The prevailing uncertainty is linked to the increasing protectionism promoted by Trump. Despite the temporary truce in tariff enforcement agreed upon between President Claudia Sheinbaum and the U.S. leader, investors remain worried. There are fears of a possible trade war that could negatively impact global trade and the economy.
Banamex, a key banking institution in Mexico, has adjusted its economic growth forecast for the country, now anticipating a stagnation scenario in 2025. Despite negotiations that temporarily halted the imposition of punitive tariffs against Mexico, uncertainty persists.
The historical connotations of aggressive protectionist policies evoke the Great Depression of 1929, partly triggered by the imposition of high tariffs on imported goods. In this context, it is essential to manage the situation prudently to avoid potential recessions in both the United States and globally. History reminds us of the dangers of irresponsible decisions in the trade sphere, and it is crucial to act wisely to navigate devastating economic crises.
