Saturday, August 30, 2025

Mexico’s week in review: Trade talks with Brazil, tariffs on China and televised attacks

The week of August 25-29, 2025, delivered significant developments across Mexico’s political, economic and social landscape. It started with a former Sinaloa Cartel leader pleading guilty in U.S. court and ended with a fist fight in Mexico’s Senate. In between, Mexico’s trade agreements and geopolitical allegiances were top of mind, but sometimes at odds. Good news for Mexico City’s water supply, along with a reminder that the FIFA 2026 World Cup is just around the corner, provided bright spots amid the political turbulence.

Didn’t have time to read every story this week? Here’s what you missed.

Sheinbaum’s approval rating soars

The high note

Polling data revealed Sheinbaum enjoying unprecedented approval ratings of 71.4% eleven months into her term, making her the most popular Mexican president at this stage in decades. The Mitofsky Group survey placed her significantly ahead of predecessors, including López Obrador (62%), Fox (62%), Calderón (66%) and Peña Nieto (56%).

Nearly 66% of respondents said Mexico is better off since she took office, with achievements in social welfare programs (8.9%), student scholarships (8.8%) and senior citizen support (8.2%) driving her popularity.

The low note

Despite her high overall approval, 46% identified security as the country’s primary concern.

Other primary issues of concern were the economy (9%), corruption (8.1%) and unemployment (5.6%).

‘El Mayo’ testifies in the United States

The week’s most significant development came with Sinaloa Cartel leader “El Mayo” Zambada’s guilty plea in U.S. federal court on Monday. The 75-year-old cartel co-founder’s testimony went beyond drug trafficking admissions, as he confessed that his organization systematically corrupted Mexican institutions by paying bribes to “police, military commanders and politicians” to “operate freely.”

A day later, Sheinbaum highlighted DEA Administrator Terrance Cole’s remarks placing former security minister Genaro García Luna “on the same level” as “El Mayo” — essentially labeling Calderón’s top security official as equivalent to the criminals he was supposed to fight.

“… It really caught my attention when … [Cole] mentioned [García Luna]. There are a lot of interesting things from yesterday, but we’ll leave it at that,” said Sheinbaum, an ardent critic of Calderón and the 2006-12 government he led.

Politics gets physical and personal

Political rhetoric escalated this week with controversial TV appearances.

On Sunday, Mexican Senator Lilly Téllez again appeared on Fox News, telling Rachel Campos-Duffy that Sheinbaum threatened to prosecute her for telling the network that Mexicans want U.S. help fighting cartels.

“The president has threatened me, to proceed against me with criminal prosecution, to get me out of the Senate and get me in jail just because I told you, in this space, in Fox News, what is the reality of our country with the cartels,” the PAN senator said.

Asked at her Monday morning press conference whether Téllez’s remarks were true, Sheinbaum responded: “No, false.”

Sheinbaum subsequently said it was “not a minor issue that a senator gave an interview to a foreign media outlet calling for intervention” from the United States.

Opposition Senator Téllez tells Fox News that Mexicans want US help against the cartels

On Tuesday, the president defended Mexico City against claims by White House deputy chief of staff Stephen Miller — again on Fox News — that the capital is “run by criminal cartels.” At her daily press conference, Sheinbaum countered with data showing a nearly 60% reduction in homicides since 2018.

The week’s most dramatic political moment came when PRI chief Alejandro Moreno physically attacked Morena’s Senate leader Gerardo Fernández Noroña on Wednesday. The altercation, which left a photographer injured, reflects deeper institutional tensions as the PRI has been reduced to just 14 senators — their lowest representation since 1929.

Other key political developments included:

US Secretary of State to visit Mexico next week

The U.S. Department of State announced on Thursday that Secretary Marco Rubio would travel to Mexico and Ecuador between Sept. 2 and 4 “to advance key U.S. priorities.”

A statement from a Department of State spokesperson said those priorities include “swift and decisive action to dismantle cartels, halt fentanyl trafficking, end illegal immigration, reduce the trade deficit, and promote economic prosperity and counter malign extra continental actors.”

Sheinbaum confirmed Rubio’s visit on Friday, but said the forthcoming security pact between Mexico and the United States “wouldn’t necessarily be signed” next week because “everything that has to do with bilateral relations has its protocols.”

Business and economic developments

Mexico demonstrated economic resilience with GDP expanding 0.6% quarter-over-quarter in Q2 and export performance remaining strong with 4% annual growth in July, despite U.S. tariffs.

Trade tensions: Choosing sides vs. superpowers

Mexico’s strategic positioning between the U.S. and China came into sharp focus with conflicting developments. While plans emerged to raise tariffs on Chinese imports as part of the 2026 budget proposal — clearly signaling alignment with U.S. demands — the week also revealed the limitations of Mexico’s relationship with other major economies.

Mexico-Brazil trade talks produced only modest agreements on agriculture and biofuels, falling far short of the comprehensive trade pact Brazil sought. The lukewarm results highlighted Mexico’s constraints within existing trade frameworks and its priority focus on North American relationships.

Mexico and Brazil’s big trade summit yields small deals as allies pull the Latin American giants in separate directions

Additional trade challenges included:

New AI investment

Foxconn announced a $168 million expansion of its Jalisco plant. According to the Taiwanese newspaper United Daily News, Foxconn’s investment in the country aims to meet demand by increasing Foxconn Industrial Internet’s (FII) production capacity at its plant in Jalisco state, where it has already begun manufacturing artificial intelligence (AI) servers.

Infrastructure and the environment

Water wins

The week brought welcome water news as Mexico City’s main supply system reached 70.7% capacity, its highest level in five years thanks to heavy summer rains. The Cutzamala System recovery from May’s drought low of 48.9% provides crucial breathing room for the capital’s 20+ million residents. Complementing this recovery, Amazon announced a $2.45 million water efficiency project implementing smart management systems to save 25% of water usage in targeted areas — demonstrating how technology partnerships can enhance infrastructure resilience.

Cross-border environmental concerns

Mexican scientists played a crucial role in restoring California red-legged frogs to Southern California habitats, growing the population from 20 to over 400 individuals before transferring breeding materials across the border.

Earlier in the week, activists reported harassment while protesting SpaceX launches that have scattered debris across the Gulf Coast, highlighting tensions over cross-border environmental impacts.

Sports achievements

Mexican sports dominated headlines with impressive international achievements:

The week’s sports diplomacy highlight came when FIFA President Gianni Infantino visited the National Palace, presenting Sheinbaum with a giant replica ticket for the 2026 World Cup opening ceremony. In a gesture capturing her leadership style, Sheinbaum announced she would give her actual VIP ticket to a young girl who loves soccer but wouldn’t otherwise have the means to access the stadium.

The tournament is projected to generate US $3 billion in economic benefits and create 24,000 jobs.

Social and cultural highlights

The week’s most heartwarming story featured a quinceañera who found thousands of supporters after being stood up on the day of her 15th birthday party.

Celebrity developments included:

Looking ahead

The week’s developments position Mexico at a critical juncture, with Sheinbaum’s record approval ratings providing significant political capital for navigating challenging bilateral relationships. Successful infrastructure investments and technology commitments signal confidence in long-term growth, particularly supporting nearshoring trends.

However, challenges remain: political institutional tensions could complicate governance, while planned Chinese tariff increases represent a delicate balancing act between U.S. demands and diverse trade relationships. As Mexico approaches the 2026 USMCA review, this week’s developments suggest the country is well-positioned to balance competing priorities while preserving sovereignty and promoting development.

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.

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