Mexican finance chief warns of economic slowdown with Trump's tariffs

MEXICO CITY, March 12 (Reuters) - Mexican Finance Minister Edgar Amador Zamora told lawmakers on Wednesday there are signs that economic growth is cooling largely due to growing trade tensions with the United States as President Donald Trump pursues tariffs.

"There are some signs of a slowdown in the national economy, closely linked to the climate we're seeing in the trade policy of our main trading partner," Amador said in his first appearance before Congress since President Claudia Sheinbaum promoted him to the job last week, referring to the United States.

Amador added that Trump's push for sweeping tariffs on goods imported from its southern neighbor are also taking a toll on the U.S. economy. Trump, who began his second term as president in January, has targeted both Mexico and Canada with tariffs.

Sheinbaum aims to avoid an economic downturn exacerbated by Trump's tariff policies. Mexico's economy is on track to contract in the first quarter, according to analysts, after it shrunk slightly in last year's fourth quarter, which would drag the country into a technical recession.

Mexico's gross domestic product contraction in the October-to-December period - down 0.6% - marked the first quarter of negative GDP growth in more than three years.

In his testimony before the lower house's finance committee, Amador said he will push for more efficient public spending and austerity measures while also "strengthening" public infrastructure spending.

"Macroeconomic stability, growth and the well-being of our population depend on a responsible fiscal policy, efficient management of public resources and a clear and coherent development strategy that allows us to successfully overcome internal and external challenges," Amador said.

Amador also embraced Sheinbaum's "Plan Mexico" initiative that seeks to insulate the Mexican economy from Trump's protectionist push by boosting domestic production.

Amador previously served as the government's deputy finance chief, working closely with former Finance Minister Rogelio Ramirez de la O. Amador has also worked at the country's central bank.