Mexico Ready for US 25% Tariffs, Says Finance Minister

Mexico is well-equipped to address global challenges, including the newly announced 25% US tariffs on its exports, according to Finance Minister Rogelio Ramírez de la O.

“Our economy rests on solid foundations, with a clear goal to lower the fiscal deficit from 5.7% to 3.9% of GDP in 2025. We are ensuring stricter spending controls while maintaining significant public investment,” Ramírez de la O stated during an investor call. He highlighted the country’s robust financial system and well-planned financial safeguards as a result of consistent, disciplined policies.

Mexico has access to US$44 billion in international credit facilities, including US$35 billion from the IMF’s flexible credit line and US$9 billion through a swap agreement with the US Treasury. These resources, Ramírez de la O noted, offer vital liquidity and protect the country’s economy and financial system.

Despite these assurances, the Mexican peso weakened, losing 1.9% to close at MX$21.0725 per dollar. While acknowledging external pressures that may dampen economic activity, Ramírez de la O ruled out a recession, expressing confidence in Mexico’s long-term economic prospects.

J.P. Morgan, however, warned that prolonged tariffs could push Mexico and Canada into recession, according to Reuters. Ramírez de la O admitted that industries such as automotive, electronics, and computing could face significant impacts but stressed that Mexico remains prepared to weather global risks.