The second week of November started with news of the arrest of the CJNG operator known as “R2” following a shootout in Guadalajara on Sunday. The focus quickly turned to the economy on Monday, as President Sheinbaum announced a new record for formal employment levels in Mexico and sought to calm worries about the rollout of Mexico’s new Digital Economy Law, designed to phase out some cash payments.
U.S. President Donald Trump threatened Thursday to double tariffs on Mexican goods unless Mexico stops a migrant caravan heading north from Chiapas. The warning came as Mexico seeks lower U.S. duties on steel, aluminum and vehicles. President Claudia Sheinbaum replied that no caravan has reached the northern border during Trump’s second term.
The same trade talks frame her trip to China next week, where she will address APEC business leaders in Shenzhen and meet Xi Jinping. She says the meeting should not complicate negotiations with Washington.
Didn’t have time to catch this week’s top stories? Here’s what you missed.
Mexico-U.S. relations: Tariff threat and a wanted ex-prosecutor test bilateral ties
New revelations this week shed light on CIA operations in Chihuahua. The operations, which Mexican authorities call a sovereignty violation, came to light in April and have since been the focus of numerous government investigations.
The New York Times reported Tuesday that Guillermo Zuany Portillo, a former Chihuahua special prosecutor, helped the CIA operate in Mexico in exchange for a U.S. visa. On Wednesday, Sheinbaum called the report “very interesting” and said the CIA’s participation in an April drug lab raid in Chihuahua violated the National Security Law. Former Chihuahua attorney general César Jáuregui was detained last month on a treason charge tied to that raid. Security Minister Omar García Harfuch said federal and state prosecutors hold outstanding warrants for Zuany.
On Thursday, Trump threatened to double tariffs in a Truth Social post, two days after a group of over 1,000 migrants left Tapachula heading north. The tariffs that could be affected include those on Mexican steel, aluminum and vehicles. Sheinbaum said Mexico will not use force against migrants, noting that no caravan has reached the northern border during Trump’s second term in office.
On Friday, after the Times reported that Zuany had fled to the U.S. and is under U.S. government protection, Sheinbaum said she would ask the Security Cabinet for more information. She called his alleged collaboration “very significant, even for the bilateral relationship,” but said she expects no friction because the matter has been discussed with the U.S. government.
China: Sheinbaum’s APEC pitch and a Yucatán research deal
As tensions with the U.S. simmer, Mexico continues to strengthen its relationship with China. On Nov. 6, Mexico’s Culture Ministry and INAH formalized a Maya archaeology project with Shandong University. The project grew out of residents’ objections to a quarry, which INAH sided with before the quarry proposal was quashed. Yucatán Governor Joaquín Díaz Mena then presented it to the Chinese Embassy, citing his aim of expanding Yucatecan exports to China.
At Thursday’s mañanera, Economy Minister Marcelo Ebrard said Sheinbaum will be in Shenzhen Nov. 17-19. She will be the main speaker at an APEC Business Advisory Council event, where only she and Xi will address the plenary. She will pitch Plan México to investors and will not meet Trump in China, though she said she will “probably” meet him at the G20 summit in Florida in December. The stakes are tied to USMCA: the Trump administration decided in July not to renew it for 16 years, and U.S. concerns include Mexico’s trade relationship with China.
Economy: Record jobs and solar permits, rising inflation
Economic signals were positive throughout the week. On Monday, Sheinbaum said formal employment reached a record 23,088,353 at the end of October. The same day, inflation rose to 3.75%, above the 3.65% median forecast in a Bloomberg survey and a third straight monthly increase. The previous week, Banxico cut its benchmark rate by 25 basis points to 6.25%. Sheinbaum credited the cut to the economy’s “good performance,” while the central bank said risks to its inflation outlook remain tilted to the upside.
The president also addressed the Digital Economy Law, which gives the Finance Ministry power to designate sectors where only digital payments are accepted. Openbank México CEO Juan José Galnares said it could cut cash use by up to 50% by widening access to credit, but warned against moving too aggressively. Sheinbaum said cash will not be phased out, though gas stations will go cash-free to curb fuel theft.
The MND Sheinbaum Index™ for September 2026: Jobs and economic growth boost president’s rating
The MND Sheinbaum Index reflected the economy’s strength. It reached 71.5 for September, its highest score to date, driven by growth and employment data. Business confidence, at 48.4, remained below the 50 neutral benchmark.
In industry, the National Energy Commission approved six solar permits worth US $750 million, adding 649 MW from 2028. Only six of 57 applications met all criteria. Auto parts production hit a record US $11.118 billion in August, though U.S. imports of Mexican parts fell 1% in value in the first eight months. Parts enter the U.S. tariff-free if they comply with USMCA rules.
Tourism: Record totals, slower growth and fewer air arrivals
New data showed that visitation is up across the country, with new records in both arrivals and spending in September. Growth, however, has slowed compared to past years: spending rose 1.4%, against 6.1% a year earlier. Air arrivals, which account for 80% of tourism foreign exchange, have fallen two years running, and Cancún, Los Cabos and Puerto Vallarta airports handled 1.9 million fewer international passengers through October. Private-sector analysts cite the lack of promotion and a 17.8% Non-Resident Tax increase in January.
Mexico City expects 65.9 million tourist arrivals in 2026, up from 61.2 million in 2025. Officials credit concerts, sporting events and cultural activities.
A record-breaking year for sargassum is finally drawing to a close. Quintana Roo declared sargassum season over, a month later than in 2025, with over 150,000 tonnes of seaweed collected.
The influx of stinky algae weighed on Caribbean beach tourism this year, but failed to sink international visitation. Tourism Minister Josefina Rodríguez told the ITB Americas trade show in Guadalajara that culture was the main draw: About 36.3% of visitors came for it, more than double the 15%-16% who came for beaches.
Security: Arrests, an abduction and a homicide data gap
The weekend featured two dramatic security incidents. On Saturday, armed men abducted Río Bravo Mayor Miguel Ángel Almaraz on a highway between Zacatecas and San Luis Potosí. He was found Sunday at a Coahuila police checkpoint and said he escaped.
Also Sunday, the Navy arrested CJNG cell leader Rafael Álvarez Ayala, “R2,” and 19 others in Guadalajara after a shootout. García Harfuch said DEA intelligence helped locate him. He is the brother of the alleged mastermind of Uruapan Mayor Carlos Manzo’s 2025 assassination.
On Monday, García Harfuch announced a 900-million-peso (US $48.2 million) package for Sinaloa, where 22,667 troops are deployed amid a rise in violence that has centered on the resort town of Mazatlán in recent months. Sinaloa’s homicides fell 18.8% in the first 10 months of 2026, yet it ranks fourth in total homicides nationwide.
Then, INEGI reported 29,488 homicides in 2025, 5,140 more than the federal count and the largest gap in more than a decade. INEGI shows a 12.1% decline from 2024; federal data show 21.2%. The Security Ministry says the sources use different methods but show the same trend. On Friday, Sheinbaum said a working group is reviewing the gap.
Good news: Young inventors, robotics wins and a World Cup bid
- Sixteen-year-old Xóchitl Guadalupe Cruz López of Chiapas showed her recycled-materials solar water heater to President Claudia Sheinbaum on Nov. 5, and Sheinbaum pledged to review its large-scale viability.
- Student teams from Aguascalientes won three awards at a robotics competition in Germany, including first place in the high school division of Robo Shuttle.
- Belgian artist Carsten Höller’s four spiral “Mexico City Slides” are now installed at the Antara shopping center, with the tallest reaching 38.5 meters.
- FIFA endorsed a joint Mexico-U.S.-Costa Rica-Jamaica bid to host the 2031 Women’s World Cup, which is expected to pass a vote on Nov. 23.
Looking ahead
At home, Mexicans are hitting their favorite stores as Buen Fin, the annual shopping discount extravaganza, kicks off.
President Claudia Sheinbaum travels to Shenzhen next week for the Asia-Pacific Economic Cooperation (APEC) forum, where she will court investors and strengthen ties with Asian leaders, including Chinese President Xi Jinping. A meeting with Trump is not on the agenda, leaving Mexico-China relations in the spotlight. However, Sheinbaum plans to meet the U.S. president in December at the G20 summit in Miami. Unresolved tariff and USMCA issues are likely to be on the table when they do.
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.
