Even as Mexico President Claudia Sheinbaum attempts to quell concerns over Donald Trump’s threat of 25% tariffs, economists are looking glumly at the trouble ahead should the US president-elect actually follow through.

Analysts have been quick to revise their 2025 forecasts, now expecting a fourth straight year of diminishing growth and far less foreign investment. Mexico’s central bank said Wednesday that any predictions would be premature, but it’s clear that just the talk of levies is enough to trigger fears of economic calamity. In all, such steep tariffs would risk nearly 11% of Mexico’s gross domestic product, according to an estimate by Bloomberg Economics.

Source: Bloomberg