Tariffs: The Preferred Term of the U.S. President and a Clear Indicator of Renewed Protectionism
In 2025, tariffs had two significant moments: Liberation Day when Donald Trump announced tariffs against the world, and the second half of December when the Mexican Congress decreed tariffs on 1,400 products from countries without existing trade agreements. This decision marks the beginning of a new industrial policy, but it also fortifies North America. Supporters of tariffs argue for their effectiveness in safeguarding industries and jobs. Amongst critics, Warren Buffett is particularly scathing, describing tariffs as acts of trade war and emphasizing that they increase costs for consumers and producers. He insists that ordinary citizens bear these costs, not foreign governments.
Key Figures and Context
Donald Trump, the former U.S. President, has been a strong advocate for tariffs, signaling a resurgence of protectionism. His support for tariffs has had tangible effects on international trade, with Mexico imposing tariffs on various imported goods. Understanding Trump’s influence and his role in shaping trade policies is crucial to grasping the implications of this new era of protectionism.
Other Notable Terms and Their Impact in 2025
Bitcoin: Reigning Cryptocurrency Amid Paradoxes
Bitcoin, the leading cryptocurrency, experienced a tumultuous year marked by contradictions. It reached its peak value of $125,245 on October 5, partly due to Donald Trump’s support. However, the market performance was disappointing, with an 8.8% decline in 2025 compared to 121% growth in 2024 and 155% in 2023. Investors’ risk aversion and uncertainty surrounding Bitcoin’s transition to institutionalization have contributed to its underperformance, causing some to return to traditional assets like gold.
Dollar: The World’s Weakest Strong Currency
The U.S. dollar, once considered a symbol of global financial strength, depreciated approximately 10% against the basket of major currencies in 2025. It also weakened by 13.6% against the Mexican peso and 17% compared to the Paraguayan guaraní. This depreciation effectively acted as a second tariff, increasing the cost of imported goods. Consequently, the U.S. trade deficit reached its lowest level in five years, according to the White House.
FIFA: Siphoning Football Fans’ Passion
FIFA, the international football governing body, has been criticized for exploiting host countries and fans’ enthusiasm. The organization’s practices have raised concerns about its financial management and the distribution of revenue generated from the World Cup.
Huachicol: Fiscal Smuggling of Gasoline and Diesel
Originally referring to criminal activities involving the theft of gasoline through duct tampering, “huachicol” now denotes tax evasion on gasoline and diesel imports into Mexico. This illicit trade costs the Mexican government around $18 billion annually and Pemex, the state-owned oil company. In March, a scandal erupted when a ship carrying 20 million liters of smuggled fuel was discovered in Altamira port, implicating the Navy, customs agents, political businessmen, and Pemex officials. Despite these revelations, no high-profile arrests have been made.
Inflation: An Unwelcome Guest Since 2021
Inflation, an unwelcome guest since 2021, is projected to close the year near 4% and likely begin 2026 with a steep climb. Factors contributing to this include tax hikes on soft drinks, tariffs, labor costs, and expectations. While policymakers may focus on price indices, household budgets tell a different story, with many experiencing purchasing power declines exceeding 5%.
Artificial Intelligence: A Transformative Yet Ethically Complex Field
Artificial intelligence, a rapidly evolving field within computer science, has the potential to automate tasks typically requiring human intelligence. The U.S. and China are at the forefront of this technological revolution, shaping global dynamics while raising ethical concerns and creating a new generation of billionaires. The AI landscape is reminiscent of a science fiction realm, with its protagonists wielding immense influence over our lives.
Judicial Reform: A Half-Processed Concept with Uncertain Economic Consequences
The judicial reform, which replaced an inefficient justice system with an untested alternative, has left unresolved questions about its economic impact. The new system’s origins lie in informal beginnings and a ritualistic introduction, now representing an awkward presence that policymakers struggle to address when questioning the decline in private investment.
Key Questions and Answers
- What are tariffs, and why are they significant in 2025? Tariffs are taxes on imported goods, and their increased use in 2025 signals a resurgence of protectionism under the influence of former U.S. President Donald Trump.
- How did Bitcoin perform in 2025? Despite former President Trump’s support, Bitcoin experienced an 8.8% decline in 2025, disappointing investors and failing to serve as a safe haven asset.
- What impact did the U.S. dollar’s depreciation have in 2025? The weakened U.S. dollar effectively acted as a second tariff, increasing the cost of imported goods and contributing to a historically low U.S. trade deficit.
- What controversies surround FIFA in 2025? Critics accuse FIFA of exploiting host countries and fans while mishandling finances generated from the World Cup.
- What is “huachicol,” and why is it significant in Mexico? Originally referring to gasoline theft, “huachicol” now denotes tax evasion on fuel imports into Mexico, costing the government and Pemex billions annually.
- How has inflation affected consumers in 2025? Inflation, near 4% at year-end, has eroded purchasing power for many households, with some experiencing price increases exceeding 5%.
- What are the implications of the growing artificial intelligence field? AI’s rapid development raises ethical concerns and creates a new class of billionaires while transforming global industries and energy demand.
- What are the economic consequences of the judicial reform in 2025? The new justice system’s uncertain economic impact, marked by unresolved questions and a lack of private investment, remains a challenge for policymakers.
