Analysts Warn of Mexican Recession as U.S. Tariff Threats Persist: 'This Quarter is Lost'

A vendor sells vegetables at a street market in Mexico City (Credit: Photo by Hector Vivas/Getty Images)

Mexico's economy is showing signs of entering a technical recession amid escalating U.S. tariff threats, according to analysts consulted by Reuters.

The reports explains that during the final months of 2024 Mexico had its first quarterly GDP slump since the pandemic and, with economic activity already weakened, the imposition of 25% tariffs on all imports from Mexico and Canada by U.S. President Donald Trump further compounds the risks. A further contraction in the first quarter of 2025 would confirm a technical recession.