US tariffs heighten economic uncertainty for Mexico, says Fitch

MEXICO CITY -- The 25 percent tariffs recently imposed by the United States on Mexican imports have significantly worsened the business environment in Mexico and heightened economic uncertainty, a credit rating agency warned on Wednesday.

According to Fitch Ratings, a potential recession could have a severe impact on Mexican companies, especially those in the construction, housing, retail and automotive industries.

"Other Mexican corporate sectors face moderate to low exposure due to diversification or alternative markets," the agency said.

Fitch also pointed out that most Mexican companies have yet to factor the tariffs into their earnings forecasts.

The newly implemented tariffs, which took effect Tuesday, are harsher than the agency had initially expected. Fitch had anticipated either a delay in implementation or a more limited scope of affected imports.

The Trump administration justified the tariffs by citing Mexico's alleged insufficient efforts in addressing migration and drug trafficking.