Parts of Latin America have been in President Trump’s firing line over the past week. While there’s uncertainty over exactly what tariffs Mexico could face (if they are imposed tomorrow, as Trump has said), the mooted 25% tariff would hit the economy hard. And while the weakness of the latest GDP and inflation figures argue in favour of Banxico cutting interest rates by 50bp at its meeting next week, a tariff-induced fall in the peso could force the central bank to stand pat.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services