The week of September 8-12, 2025, showcased Mexico’s complex economic position as the Sheinbaum administration unveiled a 10 trillion-peso budget for 2026 while defending controversial tariff increases that put her government squarely between competing pressures from China and the United States. Against a backdrop of high-stakes diplomacy and several violent tragedies, a new Mexican-made airplane took its maiden flight, ground broke on a northern train line connecting major cities, and Sheinbaum prepared for her historic first Independence Day as the first woman to give “el grito.”
Didn’t have time to read every story this week? Here’s what you missed.
Mexico to adopt protectionist measures
The week’s dominant story centered on Sheinbaum’s proposed tariff increases on a range of products from countries that do not already have a free trade agreement with Mexico.
The tariff proposal, targeting 1,371 product categories including everything from textiles to vehicles, reflects Mexico’s position between its largest trading partner, the United States, and global manufacturing competitors — namely, China. If the reform is approved by Congress, Mexico’s tariff on cars imported from China and some other Asian countries will increase from 20% to 50%.
Facing US pressure, Mexico to raise tariffs on Chinese cars to 50%
Sheinbaum defended her administration’s decision to raise tariffs, emphasizing that the proposed tariffs aimed to strengthen Mexico’s economy rather than target any specific nation.
“The Mexican automotive industry is 23% of national manufacturing. So we have to protect it. One of the ways to protect it is to increase the tariffs that these light vehicles pay,” Economy Minister Marcelo Ebrard said.
Sheinbaum brushes off criticism from Beijing to Lima
Mexico’s tariff announcement triggered sharp criticism from China, with the Commerce Ministry warning Mexico to “exercise extreme caution” and characterizing any unilateral tariff increases as “appeasement toward unilateral bullying.”
Sheinbaum rejected Chinese accusations that the measures were enacted under U.S. coercion, maintaining that the policies served Mexico’s economic interests. Her diplomatic approach appeared to defuse tensions, with her administration scheduling talks with Chinese officials to address their concerns.
Meanwhile, Peru moved to declare the Mexican president a persona non grata, due to her refusal to recognize Dina Boluarte as Peru’s legitimate president. In response, Sheinbaum said the proposal to declare her a persona non grata “doesn’t matter.”
Roadway accidents in the capital kill 21
On Wednesday, a gas tanker explosion in Iztapalapa sent shockwaves through the city after the accident killed 11 people (updated from 8) and wounded close to 100. As of Saturday, more than 50 people remain in the hospital with burn injuries. According to city officials, the driver of the tanker was driving above the speed limit when the vehicle overturned and ruptured.
On Monday, a devastating bus-train collision northwest of Mexico City killed 10 people, raising urgent questions about transportation safety protocols in the capital’s busy transit corridors.
Navy corruption scandal
The week also brought significant challenges for Mexico’s military institutions as several members of the Navy were arrested in a fuel smuggling crackdown, highlighting ongoing corruption within the country’s port authorities.
In the days that followed, two Marines died in unconnected incidents, and on Wednesday, a reporter attending the president’s daily press conference asked if one or both of the deaths were a coincidence. Sheinbaum scolded the reporter, saying, “I’m not going to answer you out of respect for the victims and the investigation … insisting on [asking about] such a regrettable and sensitive issue doesn’t seem right to me,” Sheinbaum said.
Her handling of the sensitive topic reflected the administration’s commitment to transparency while maintaining support for the military, including successful efforts such as the Navy’s recent seizure of 1,600 kg of cocaine off the coast of Guerrero.
Economic data points to know
- The Finance Ministry on Monday presented a 10 trillion-peso budget for 2026 that includes an 18% increase in welfare spending, a key priority of the federal government.
- The peso achieved its best performance against the dollar in over a year, reaching 18.43 per dollar.
- The Mexican Stock Exchange reinforced this optimism, hitting historic highs throughout the week and closing Thursday with a 23.57% year-to-date gain.
- Moody’s boosted Pemex’s credit rating from B3 to B1, based on its very high government support.
- Inflation data showing a slight uptick to 3.57% in August remained within the expected range.
Canines lead innovation in public service
Perhaps the week’s most remarkable stories showcased how Mexico is employing canine intelligence for public service innovation. Manchas, a Brittany Spaniel trained to detect water leaks, is revolutionizing water conservation in Saltillo. With a 96% success rate, Manchas has helped repair 230 leaky pipes in five months, preventing the loss of up to 14 liters per second — enough to supply over 3,000 families.
On the security front, Zacatecas unveiled an armed DogBot as part of a $53 million security command center, marking a technological leap in law enforcement capabilities. The rifle-wielding robot can operate remotely in high-risk environments and move at 6 meters per second, or 13.4 mph.
New travel routes
Viva plans to relaunch direct flights between Los Angeles and Mérida in December, reconnecting the Yucatan Peninsula with Southern California’s large Mexican-American community.
The airline also introduced a seasonal new Monterrey-New York City route, which will become permanent ahead of the 2026 FIFA World Cup.
Rail infrastructure also advanced as Mexico broke ground on a northern train line connecting Saltillo, Monterrey and Nuevo Laredo. Mexico’s National Institute of Anthropology and History (INAH) announced that it has completed 100% of the surface surveys on the right-of-way and discovered over 200 historical and archaeological sites that its specialists are now working to protect.
Archaeologists work to preserve 200 historical sites as Mexico’s northern train line breaks ground
These connectivity improvements came as international travel data showed strong performance in July 2025, indicating growing confidence in Mexico as a destination for both leisure and business travelers.
Mexico celebrates homegrown talent ahead of Independence Day
The country’s women’s archery team won gold at the World Championships in South Korea, and rising star cyclist Isaac del Toro earned his 12th victory this year, inspiring a new generation of Mexican athletes.
The culinary world also brought pride as Mexico’s Michelin-starred taco stand continued to attract international attention with its most recent pop-up in Tucson, Arizona. Arizonians: tomorrow’s the last day!
Mexican aviation achieved a milestone with the launch of the Halcón 2.1 airplane — the first aircraft in nearly 70 years to be 100% designed and manufactured in Mexico under international standards
Environmental news
- Mexico implemented a complete ban on DDT, half a century after the rest of the world recognized the pesticide’s harms to human health.
- Mexican and U.S. scientists have sounded the alarm after 92 gray whales washed up dead during the most recent breeding season in Baja California Sur, reportedly due to malnutrition.
- Ecatepec, central Mexico’s least safe city, set a Guinness World Record for trash collection, demonstrating civic engagement in community improvement efforts.
Looking ahead
As Mexico moves forward from this eventful week, several trends emerge that will likely shape the coming months. The successful defense of tariff policies while maintaining diplomatic dialogue with China demonstrates Sheinbaum’s pragmatic approach to international relations. The president’s ability to balance U.S. trade pressures with Chinese economic interests will prove crucial as USMCA renegotiations approach.
Economic indicators suggest growing confidence in Mexico’s stability, with peso strength and stock market performance reflecting positive investor sentiment. However, the government must walk a fine line between protectionist measures and maintaining open trade relationships that have driven Mexico’s economic growth. Questions also emerge about the balance between welfare spending and job creation.
Mexico News Daily
This story contains summaries of original Mexico News Daily articles. The summaries were generated by Claude, then revised and fact-checked by a Mexico News Daily staff editor.
