By Aida Pelaez-Fernandez
MEXICO CITY (Reuters) – Bank of America is optimistic about its future in Mexico and likely to benefit from the so-called “nearshoring” trend even after threats of tariffs on exports to Mexico. the US by newly elected President Donald Trump.
WHY IT’S IMPORTANT
Trump’s threat earlier this week to impose tariffs on Mexico and Canada has roiled markets and clouded the horizon for investment by multinationals in the region.
The three countries are part of a regional trade agreement known as the USMCA, which is due for review in 2026. The neighboring countries, especially the US and Mexico, are highly dependent on imports and exports from the other country.
KEY QUOTES
“It will be very difficult due to uncertainties, both internal and external, to change or adapt the opportunities we see in Mexico,” Emilio Romano, head of Bank of America in Mexico, said at a news conference.
“We believe that the phenomenon of nearshoring or friendshoring will not be reversed,” he said, referring to the trend in which large multinationals have moved their activities to Latin America’s second-largest economy.
“Mexico will not deviate from this North American economic integration, there is no turning back.”
BY THE NUMBERS
Bank of America expects to double its revenue and customer volume in Mexico within the next five years, Romano said.
The company’s customer base should grow from 400 to 800, according to the director. In Mexico, BofA offers institutional banking services and does not serve individual customers.
Romano declined to provide more details about the bank’s revenue prospects.
WHAT’S NEXT
Trump’s tariff threats will continue to generate market volatility, Romano said. However, he warned that this was likely a negotiating strategy by Trump to kick-start trade negotiations and was unlikely to actually be imposed.
(Reporting by Aida Pelaez-Fernandez; Editing by Anthony Esposito, Kylie Madry and Michael Perry)
