Understand more about the tariff crisis

In this article come on to talk about the tariff crisis. The objective is to understand how that moment can affect the Mexican economy. In May, Trump has threatened to impose tariffs on products imported from Mexico.

If this does not stop the migration of the countries of the southern region. Rates would start at 5% and gradually increase each month up to 25%. In short, after the first term agreed with the ruler of the country of the northern region.

Mexico managed to bear the fruits expected by Trump and therefore the tariffs were ignored. However, if the export tariffs had been applied, the effects would have been disastrous on the Mexican economy.

Some reasons that caused the tariff crisis

Fitch withdraws the "interest level" to Pemex

At the same time that the US tax risk emerged, one of the rating agencies, Fitch, lowered Pemex's valuation to a grade that eliminates its "investment level." In other words, the risk of investing in this company is high because, according to the assessment of the rating agency, the company's situation increases the probability of default.

On its own, this event can be considered remote and without a significant impact on the Mexican economy. However, the close relationship of the state company with the public economies of the Mexican government is well known, and especially with the Obrador project.

Therefore, a reduction in the level of Pemex also causes situations. So rating agencies consider downgrading sovereignty.

Urzúa resignation

At the beginning of July, the unexpected news of Urzúa's resignation broke. The secretary of finance, to integrate the cabinet of López Obrador. Although it is not the first important resignation in the government, it is the first of a head of ministry.

GDP increase and the tariff crisis

The increase in GDP left a lot to be desired this year. On average, the Gross Domestic Product of the country had a performance of 0%; this is, at least, the economy is stagnant.

This situation does not bode well for the end of the year. And it causes great uncertainty for the coming year. Several institutions, in recent months, have reduced their growth forecastsfor the next twelve months.

Set of economic measures

During September, the AMLO administration presented its balance sheet project for the next fiscal year. Among other aspects, it was a milestone for the Mexican economy this year, as it highlighted the savings strategy that Obrador had been promoting.

There were important cuts in many agencies and a restructuring of spending in such a way as to concentrate their resources on the government's priority needs. It is also believed with the intention of alleviating the tariff crisis.

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