Economic Uncertainty in the Art Scene
This past weekend, the art scene of Guadalajara buzzed with excitement as dealers, artists, collectors, and advisors convened for ART WKND GDL.
Yet, as this vibrant community celebrated creativity, it also grappled with emerging economic hurdles.
With Zona Maco gearing up for its 21st edition starting Wednesday in Mexico City, experts began to raise concerns about the possible effects of escalating trade tensions on the nation’s cultural landscape.
On Saturday, President Trump announced executive orders for a 25% tariff on imports from Mexico, set to take effect the following Tuesday.
The uncertainty surrounding this development intensified when, on Monday, Mexican President Claudia Sheinbaum took to social media to declare a one-month postponement of the tariffs.
This delay followed her government’s commitment to bolster border security by deploying 10,000 National Guard troops to tackle the rising issue of drug trafficking, particularly fentanyl.
Concerns Among Gallery Owners
Gallery owners and participants gearing up for upcoming events like Zona Maco, Material, and Salón Acme found themselves navigating a landscape filled with mixed emotions.
Many expressed anxiety about the impact these tariffs could have on collectors’ purchasing habits and the financial burdens galleries might face.
Issa Benitez, who heads the Mexico City gallery Proyecto Paralelo and is an influential member of GAMA, the local gallery association, articulated the shared apprehension regarding the potential consequences of the tariffs.
Past instances of peso devaluation against the dollar have left many concerned about the ramifications of a trade war on both the art market and the broader Mexican economy.
Gabriela Siller, an analyst from Banco Base, echoed these worries, highlighting the prospect of increased unemployment and rising prices if tariffs take effect.
Such outcomes could force Sheinbaum’s administration to implement countercyclical fiscal measures to cushion the blow.
Benitez lamented a noticeable absence of communication from the Mexican authorities concerning these developments.
Although GAMA played a crucial role in advocating for galleries to reopen during the pandemic, the flow of dialogue has since stalled, hindered by the political landscape shaped by the leftist Morena party.
This lack of engagement has left her feeling sidelined in vital discussions that affect the art community, sparking concerns over the rapid changes occurring beyond their influence.
Resilience and Cautious Optimism
In a similar vein, Alexandra Lovera, the sales director at Proyectos Monclova, shared that her gallery had yet to engage deeply with the implications of the tariffs.
Due to the unpredictability surrounding their actual impact, the gallery is cautious.
Proyectos Monclova, which is registered in the U.S. for logistical purposes, typically employs a temporary shipping model during international fairs, where costs are either covered by buyers or absorbed by the galleries.
Graham Wilson, founder of Swivel Gallery in New York and an active participant in this year’s fairs, viewed tariffs as a familiar challenge in the business world.
He expressed a sense of optimism, noting that despite any additional costs stemming from tariffs, the Mexican art scene continues to evolve independently and steadily, revealing a strong foundation that is now gaining visibility.
Observing a rise in American collectors attending events in Mexico City, he also acknowledged that most visitors hail from within Mexico and other Latin American or European countries.
Wilson takes pride in spotlighting Mexican artists, emphasizing that successful exhibitions play a crucial role in providing financial support to these talents.
As the art community closely monitors the shifting economic landscape, art advisor Ana Sokoloff from New York noted that while collectors have expressed interest in understanding the potential effects of the tariffs, substantive discussions remain limited.
She harbors hope that any new tariffs won’t drastically alter buying behaviors.
Instead, she emphasizes concern over practical aspects of collection management, such as shipping and storage, rather than immediate price changes.
Benitez pointed out that Mexican collectors occupy a unique position—they often make purchases independent of national economic trends.
She remarked on the striking contrasts between the Mexican and European art markets, where international events can swiftly sway buying patterns.
In spite of the uncertainties, she believes Mexico possesses a remarkable resilience and could potentially enjoy a prosperous year ahead.
As Zona Maco opens its doors this Wednesday, accompanied by the other fairs on Thursday, the art world will soon witness whether this economic unease has any tangible effects on the marketplace.
Overall, the atmosphere remains one of cautious optimism as the art community prepares to embrace the future, celebrating creativity in the face of adversity.