Wells Fargo warns: U.S. tariffs may push Mexico into recession, increasing the risk of peso sell-off

Wells Fargo warned that U.S. tariffs could lead to a recession in Mexico, further exacerbating the risk of peso depreciation. Although the peso has performed relatively strongly this year, analysts believe it is still overvalued, with GDP growth expected to be only 0.1%. If the U.S. implements a 25% tariff, the recession will be even more severe. Wells Fargo recommends that the Bank of Mexico maintain monetary easing and not intervene in peso depreciation