Mexico's Economy Minister Says Trade Relations with US Are the Century's Biggest Challenge
GeopoliticsMacro
Marcelo Ebrard, Mexico's economy minister, said on Sunday (August 30) that the new form of trade relations between Mexico and the United States represents the country's biggest challenge of this century. Speaking at a meeting of the Morena party, he said, "We have never faced such a great and complex challenge in our relationship with the United States." He noted that the global economy is shifting from a free trade system to one increasingly influenced by protectionist ideas, with the aim of bringing some manufacturing activities back to the United States. Ebrard said that the origin of products is becoming more important, whereas in the past price and quality were more significant factors. Mexico is trying to maintain access to the U.S. market and keep its effective tariff rates among the lowest in the world. Additionally, Mexico has significantly increased exports of electronics, computer equipment, and products related to artificial intelligence (AI) to the United States during 2025-2026. The Mexican government forecasts that the economy, the second-largest in Latin America, will grow by around 1.8% to 2.8% in 2026, after expanding 0.5% in 2025, driven mainly by the services sector amid weakness in the industrial sector linked to the United States.
