Government officials stand along the side of the highway as part of the Mexico Te Abraza program, helping caravaning Mexican nationals return home for the holidays from the U.S. (José Narro / X)
A group of 20,000 migrants traveling in nearly 4,000 vehicles crossed into Mexico from Texas this week as they returned to spend the year-end holidays with their families.
The massive caravans are assisted by the government-sponsored program “Mexico embraces you” (“México te abraza”), which is managed by the National Migration Institute (INM).
🇲🇽🛻Migrantes mexicanos viajan en caravana de regreso a su país para pasar las fiestas decembrinas con sus seres queridos.
El gobierno de Claudia Sheinbaum ha implementado protocolos para que sus paisanos viajen seguros y sin contratiempos. pic.twitter.com/1jBzUbvXKI
State authorities from Quéretaro and Hidalgo are also cooperating as the large majority of the returning migrants hail from the Bajío region in west-central Mexico.
Omar Álvarez, the director of INM’s Migrant Protection and Liaison agency, said the operation is designed to provide permanent support for the migrants from the time they cross the border until they reach home.
The INM program involves the cooperation of the National Guard, state police, municipal authorities and representatives in each state en route. There are also designated telephone support lines available to the caravans.
“The most important thing is safety,” Patricia Hernández, director of Migrant Services in Querétaro, told the newspaper N+, adding that the priority is to accompany them “until we’re sure that each and every one of our fellow citizens arrives safely with their families.”
The “Mexico te abraza” plan has been well received by the migrants themselves. Jorge Chávez told La Jornada newspaper that the operation seems “much more organized” than in previous years.
“The presence of the authorities is noticeable and that makes us feel very safe; it’s truly a welcome,” he said.
Gloria Guadalupe Olvera, traveling from Houston to Río Verde, San Luis Potosí, said she has been making the trip back home for a decade.
“Thanks to the program, I feel safe enough to travel alone,” she said. “If this operation didn’t exist, I wouldn’t come.”
The INM’s Álvarez said 3,700 vehicles crossed into Nuevo Laredo by Wednesday and that a total of 80,000 vehicles are expected to participate in the caravan program which began on Nov. 28 and will be active through Jan. 8.
There has been some cause for concern at the border crossing sites, however.
Mexican authorities have urged returning migrants to be informed, given the increase in immigration checks at U.S.-Mexico border crossings.
The mayor of Río Verde, San Luis Potosí, said a caravan of vehicles headed for that state had experienced some difficulties when U.S. immigration officials carried out inspections at the Laredo-Nuevo Laredo border crossing.
“Coordination with Mexican agencies and consulates allowed all vehicles in the San Luis Potosí caravan to cross without incident,” Mayor Arnulfo Urbiola told N+. “I don’t know if compatriots from other municipalities were affected, but all our people got through.”
The federal government has designated three seasons for caravan protection — Holy Week, summer and winter — with the year-end caravan involving the highest number of compatriots.
The president gave a peak into her 2026 priorities and clarified a couple of points about the upcoming review of the USMCA free trade deal at her Friday presser. (Gabriel Monroy / Presidencia)
Trade was a key focus of President Claudia Sheinbaum’s Friday morning press conference.
Sheinbaum spoke about Mexico’s recently-approved tariffs as well as the USMCA review, which will take place next year.
At the end of the mañanera, the president was asked whether she partakes in the “twelve grapes” ritual, a tradition in which people eat 12 grapes at the stroke of midnight on Jan. 1.
Sheinbaum: With tariffs, government doesn’t want to cause inflation or production problems
During her Q&A session with reporters, Sheinbaum stressed that her government doesn’t want to “cause inflation” as a result of the implementation of tariffs on imports from countries with which Mexico doesn’t have trade agreements.
Approved by Congress this month, new and higher tariffs up to 50% on imports from various countries including China, India, South Korea, Indonesia, South Africa and Brazil will take effect on Jan. 1.
Economy Minister Marcelo Ebrard estimated on Monday that the tariffs would only add 0.2 percentage points to Mexico’s inflation rate.
Sheinbaum also said that her government doesn’t want to cause problems for manufacturers that rely on inputs from countries with which Mexico doesn’t have free trade agreements.
In that context, Ebrard said last week that Mexico is mainly targeting “finished goods” with the new tariffs, rather than intermediate goods, which he noted are needed to “produce, assemble and export.”
She said that her government “completely agreed” with the changes — i.e. a lowering of many of the tariffs that were originally proposed.
Sheinbaum noted that the Economy Ministry (SE) has the authority “within the framework of the law” to make further reductions to the tariffs if deemed necessary.
In other words, if the new tariffs are having an outsized impact on inflation, or on manufacturers, they could be altered by the SE.
Mexico discussing tariffs with China, India and South Korea
Sheinbaum said that Mexico, through the Ministry of Foreign Affairs and the Economy Ministry, is discussing the soon-to-be enacted tariffs with China, India and South Korea.
Representatives of the Chinese, Indian and South Korean governments have all made public remarks about the tariffs as they seek to get a better deal for their exports to Mexico.
Asked whether Mexico would seek trade agreements with those countries, Sheinbaum responded:
“Well, I don’t know if … [there will be] a treaty, a trade agreement, some kind of scheme. We don’t want to make enemies with any country, any people or any government. What we’re seeking is national development within a plan we established that we call Plan México.”
Among the objectives of the 2025-30 plan are to reduce reliance on imports from China and other Asian countries; increase the production of manufactured goods in Mexico; and create 1.5 million new jobs.
The new tariffs seek to support all of those goals.
Mexico Approves Up to 50% Tariffs on China, Other Asian Nations
“According to the legislation, Chinese cars face among steepest tariffs at 50%. The country’s massive auto sector currently holds 20% of Mexican market, up dramatically from minimal vehicle imports just 6 years ago” pic.twitter.com/2mecdFd9A8
While Mexico is willing to engage with China, India and South Korea and listen to their concerns about the tariffs, it appears unlikely that it will grant any significant concessions to them in the short term.
Indeed, Ebrard said last week that the legislation approved by Congress is “quite reasonable” and opined that he didn’t believe it would “change in the short term.”
Sheinbaum said on Friday that her government will provide updates on its dialogue with officials from the countries that will be affected by the new tariffs that will take effect on Jan. 1.
Sheinbaum noted that the Trump administration has imposed a lot of tariffs this year — including on imports from Mexico and Canada — but declared that she is nevertheless “very positive” and “very optimistic” about the USMCA review.
Striking how uniquely exposed to Trump’s tariffs India is:
– 33% effective tariff rate (among the highest now)
– 19% of exports went to US last year (not Mexico, but high-ish) pic.twitter.com/qpDqUXicFp
She highlighted that U.S. Trade Representative Jamieson Greer spoke to U.S. lawmakers this week and paraphrased him as saying “the [USMCA] agreement has been very good, but some issues have to be reviewed.”
“More or less, in a few words [that’s what he said]. His speech is quite long,” Sheinbaum said.
“That, in addition to the talks we’ve had [with the U.S.], gives us the view that we’re on the right track. And the Mexican economy will be fine in 2026,” she said.
The government’s priorities in 2026
A reporter asked the president what the government needs to “consolidate” in 2026, and also inquired whether she partakes in the 12 grapes ritual and if so what her 12 wishes for the new year would be.
Sheinbaum responded that the most important thing for her government is “the people of Mexico” and “their well-being.”
“And in that sense, we always work,” she said.
Friday’s conference offered a peak into President Sheinbaum’s policy goals for 2026, as well as her own wishes for the new year. (Gabriel Monroy / Presidencia)
Sheinbaum went on to say that the fourth transformation political movement that was founded by former president Andrés Manuel López Obrador and which she now leads “has to be consolidated,” as to date there have only been “seven years of transformation.”
“Next year, we’re going to dedicate a significant amount of time to public investment,” she added.
“We’re going to continue dedicating significant time to the issue of security because … [improving security] must always be our goal,” Sheinbaum said.
She also said that citizens’ social and human rights, education, health care, housing and welfare programs would be priorities for her government in 2026.
“I’m very positive,” Sheinbaum said.
“And [with] the 12 grapes [my wishes go to] family, neighbors, nature, the homeland and then pueblo, pueblo, pueblo, pueblo, pueblo, pueblo,” she said, referring to the people of Mexico.
By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)
Richard Hart made the mistake of criticizing the bread in his adopted home of Mexico, and paid the predictable price for it on social media.
(Shutterstock / Cuartoscuro)
A British celebrity baker who built his career on artisanal sourdough has angered many Mexicans by dismissing their bread as “ugly” and lacking in nuance, then scrambling to apologize from the city where he now lives and works.
Richard Hart, a London-born baker and co-founder of Green Rhino bakery in Mexico City’s trendy Roma Norte neighborhood, questioned Mexico’s bread-making traditions during an interview on the Danish podcast Pop Foodie Radio.
EL PANADERO CON EL PAN
Desde 1927…
Una de las panaderías que han hecho historia en la Ciudad de México, sus fundadores, inmigrantes españoles con experiencia en repostería europea, llegaron con el propósito de ofrecer productos de alta calidad.#CronicasDeBanqueta#arturotrejopic.twitter.com/jF9wMudkMo
He said Mexicans “don’t really have much of a bread culture” and “they make sandwiches on these white, ugly rolls that are pretty cheap and industrially made” — remarks seen as a swipe at everyday bolillos and teleras.
In a separate segment, Hart said, “Most people in Mexico eat sweet bread. They call it bread, but it’s more like pastries and buns. You know, they call everything bread, like croissants … It’s pretty obvious, because their version of a sandwich is the taco … you know, for Mexicans, that’s their sandwich.”
He also criticized Mexican flour. “What they use is completely processed, full of additives, like dough strengtheners and things like that.”
Hart later issued an apology, promising “to listen more and speak less” and “demonstrate through actions — not words — the respect that Mexican culture deserves.”
But by then the comments, though recorded in April 2024, had spread rapidly across social media after they were revived this month, provoking a wave of criticism.
“Don’t mess with the bolillo,” warned one post on X.
Others said Hart’s remarks minimized a bread tradition rooted in the Mexican Revolution and sustained by neighborhood panaderías that remain social hubs.
“He wants to be the Christopher Columbus of bread,” pastry chef Tania Medina told The Guardian, accusing Hart of “stomping” on a country that had welcomed him.
Commentator Rodrigo Sierra told The Guardian that Mexico has more than 600 kinds of bread, including pan de muerto for Day of the Dead, and called Hart’s view “very Eurocentric.”
“Bread is embedded in our culture … it’s an important part of a Mexican’s ritual,” he said.
Julio González of the Mexico City bakery project Buñuelo wrote on social media that “sometimes, when a lack of information is mixed with arrogance, it’s usually called ignorance.”
The backlash also intersected with broader anger over gentrification in Mexico City, where some residents say foreign arrivals drive up rents while catering mostly to tourists and expatriates.
Green Rhino itself offers items priced from about 50 pesos (US $2.77) for a flavored concha to 75 pesos (US $4.17) for an apple croissant to 165 pesos (US $9.15) for a sourdough loaf made with toasted pumpkin seeds, olive oil, garlic and rosemary — far above typical bakeries serving bolillos and pan dulce.
As the backlash grew, Hart issued his apology on Instagram and in Mexican media.
“I want to offer a clear and sincere apology. I made a mistake, and I deeply regret it,” he said. “However, my words didn’t reflect that respect; in this country, I’m a guest, and I forgot to act like one.”
He added: “I don’t expect an apology to erase the harm done, but I do want to take responsibility for learning and correcting my mistakes.”
Hart made a name for himself while working at Tartine in San Francisco, then co-founded Hart Bageri in Copenhagen. He moved to Mexico City and opened Green Rhino bakery in Roma Norte in June 2025.
He is a James Beard Award winner for his cookbook “Richard Hart Bread: Intuitive Sourdough Baking” whose work at Hart Bageri inspired a storyline for the FX series “The Bear.”
The Cananea mine, seen here in 2009, sat idle during the first years of the nearly two-decade strike. (Ivan Stephens / Cuartoscuro.com)
One of the longest strikes in Mexico’s history came to an end on Wednesday night when the National Mining Union (SNM) signed agreements with the federal government and Sonora state authorities.
Workers at the iconic Cananea mine had been on strike since July 30, 2007. The workers’ 6,715 days on the picket line ended not through an agreement with mine owner Grupo México, but rather because SNM leaders secured a fund of 483 million pesos (US $26.8 million) to resolve the strike.
National Mining Union members gathered in Mexico City in early December for a rally in honor of the 7th anniversary of the Fourth Transformation political movement founded by former President Andrés Manuel López Obrador. (Sindicato Nacional Minero / Facebook)
Heriberto Verdugo, the Sonora delegate of the SNM, said the funds in question will be used to compensate the over 600 workers who remained on strike with back wages, Christmas bonuses and other benefits.
Napoleón Gómez Urrutia, the SNM union leader, said “the tough and cruel battle is now over,” adding that attention must now be turned to ongoing strikes in Taxco, Guerrero, and Sombrerete, Zacatecas.
The striking miners in Cananea faced unemployment, hunger and repression, with at least 53 of their companions dying since the strike began more than 18 years ago.
They survived clashes with the federal police, endured broken promises, suffered from 40-degree heat (104 F) while blockading local highways and traveled 2,000 kilometers (1,240 miles) to Mexico City to protest outside the National Palace on several occasions.
The SNM alleged violations of the collective bargaining agreement as well as serious failures with regard to worker safety and hygiene.
The situation was complicated by disputes over the union bylaws, controversies involving Gómez Urrutia (who faced charges of embezzling US $55 million from the union as well as accusations that he was illegitimately elected to union leadership) and accusations that miners vandalized the facilities, threatening the concession rights of the mine.
For nearly two decades, the miners survived what they called “systematic aggressions” from mine owner Grupo México and what Gómez Urrutia described as “antagonism” from the governments of Felipe Calderón (2006-2012) and Enrique Peña Nieto (2012-2018).
The Cananea mine, also known as the Buenavista mine, sits roughly 35 kilometers south of the international border with Nogales, Arizona. It is one of the largest open-pit copper mines in the world. (NASA)
During his presidential campaign in 2018, President Andrés Manuel López Obrador embraced Gómez Urrutia and welcomed him into his movement, helping to put negotiations back on the front burner.
Since taking office in 2024, President Claudia Sheinbaum has helped shepherd negotiations toward the final agreement reached this week.
The resulting Comprehensive Solution Plan respects key clauses of the original Collective Bargaining Agreement and fully recognizes the acquired rights of the workers and adds universal health coverage to the contract.
In addition to the 483 million pesos, an additional 59 million pesos (US $3.3 million) will be disbursed by the Labor Conciliation Board. Verdugo said the 53 widows of the deceased miners are also included in the resolution and will receive social security and pensions.
Viva Aerobús accounts for 38% of domestic air travel in Mexico and Volaris 33%, so together they could claim more than 70% of the market. (Daniel Augusto / Cuartoscuro.com)
Mexico’s two major low-cost airlines — Volaris and Viva Aerobús — plan to merge into a single low-cost airline group that would become the country’s largest domestic carrier.
According to their announcement Thursday, the two companies would merge under a single holding company, each maintaining its own brand and separate operations, with the aim of increasing low-cost air travel and connectivity, both domestically and internationally.
“Volaris and Viva have entered into an agreement to form a new airline group with the goal of expanding ultra-low-cost air travel for Mexicans and customers both domestically and internationally,” Volaris Executive Vice President Holger Blankenstein said in a LinkedIn post.
He added that the transaction won’t impact existing routes, contracts or agreements, and will keep fares low while increasing travel options. Passengers will also continue to purchase Volaris and Viva tickets separately.
“Customers will continue to have the same options they value today, with broader access to point-to-point travel solutions,” he said.
Meanwhile, Viva CEO Juan Carlos Zauzua said that “both airlines share a similar low-cost DNA and mindset and have always believed in making travel more accessible and possible for everyone.”
Under the terms of the agreement, the carriers will unite their holding companies in a merger of equals, leaving each company with 50% ownership. Viva shareholders will obtain newly created shares in Volaris’ holding company, while current Volaris investors will keep their stakes.
The deal is still subject to regulatory approvals and both companies expect it to be finalized in 2026, with shares remaining listed in Mexico and New York.
The new group’s board will be made up of members from both carriers and headed by Mexican magnate Roberto Alcántara, who leads the transportation group IAMSA, which owns and controls Viva.
Meanwhile, Volaris’s largest shareholder is the private equity firm Indigo Partners, which also controls the US airline Frontier and the Chilean airline JetSmart.
What the merger means for Aeroméxico
Both airlines fly exclusively Airbus aircraft and operate similar routes. They both share the same competitor in Mexico: flagship carrier Aeroméxico.
The two low-cost airlines combined hold about three-quarters of the domestic market. In 2024, Viva and Volaris together accounted for some 71% of domestic traffic (38% for Viva and 33% for Volaris), while Aeromexico hovered around one-third of the domestic market.
They also outnumber Aeroméxico in number of aircraft. Combined, the two low-cost-airlines operate a fleet of 211 aircraft, while Aeroméxico operates 161, according to the Federal Civil Aviation Agency (AFAC).
With the merger, the new low-cost group would become the leader in domestic flights, leaving Aeromexico as the second domestic player, with more weight on higher-value international routes.
Middle class life is not quite as distant a dream for most Mexicans as it was less than a decade ago, though the World Bank warns that challenges lie ahead in the quest for eliminating inequality. (Mario Jasso / Cuartoscuro.com)
The Mexican government on Friday said that for the first time in history, more Mexicans are categorized as middle class than as living in poverty.
Jesús Ramírez, director of President Claudia Sheinbaum’s Council of Advisers, also said that based on World Bank data the Mexican middle class grew by more than 12 percentage points between 2018 and 2024.
President Sheinbaum stands before a graphic Friday showing the growth in recent years of the Mexican middle class, along with a decline in the poverty rate. (Rogelio Morales/Cuartoscuro.com)
“These figures coincide with [our own] data indicating a reduction in poverty,” Ramírez said, referencing the August national statistics agency [INEGI] report that poverty was reduced from 41.9% of the population in 2018 to 29.6% by last year.
The August INEGI report found that the number of Mexicans living in poverty declined from 51.9 million in 2018 to 38.5 million in 2024.
In a social media post, Ramírez said the social policy championed by the Fourth Transformation political movement (4T) helped Mexico’s middle class increase by the greatest percentage among Latin American nations.
“Poverty decreased by 13.6% and the middle class … grew from 27.2% to 39.6%,” he wrote.
Ramírez said the World Bank report indicated that approximately 12 million Mexicans rose to middle class status during this period, which “coincides with the rise to power of the Fourth Transformation (4T) movement.”
Sheinbaum’s predecessor as president and the founder of the 4T, Andrés Manuel López Obrador, took office in December 2018.
The World Bank data on which Ramírez based his report comes from an October 2025 World Bank study titled “Regional Poverty and Inequality Update, Latin America and the Caribbean.” It found that Mexico and Brazil were the Latin American countries whose middle class grew the most since 2018.
The World Bank confirmed that Mexico has reduced poverty in recent years, although “at a slower pace than other countries with similar characteristics.” However, it said the eradication of extreme poverty in Mexico can be a clear public policy objective.
Additionally, the World Bank’s 2025 outlook sees Mexico continuing its path to being an upper-middle-income nation, but can expect “ongoing challenges in poverty reduction and inequality, requiring strategic investments and inclusive policies to truly broaden its middle class.”
Citing World Bank data, Ramírez said that in 2018, 35.5% of the Mexican population was below the income poverty line, while by 2024 that percentage had decreased to 21.7%.
The reduction in poverty produced unprecedented growth in the middle class, Ramírez said, boosting it from 27.2% of the population in 2018 to 39.6% in 2024.
“As a result, for the first time in Mexico’s history, the number of people in the middle class is greater than the number of people living in poverty,” he said.
The strategy of investing at the base of the pyramid not only resulted in the growth of the middle class, but also had positive effects on the overall economy, boosting consumption, business profits and financial activity.
“This proves that our economic and social policies not only lifted millions of people out of poverty, but also raised the living standards of other segments of the population and benefited society as a whole,” he said.
For her part, Sheinbaum attributed the nation’s progress to the 4T and what she called the movement’s belief in “a humanist government.”
“It’s called a moral economy, welfare programs, rights — not assistance programs, but rights,” she said.
In presenting the data, Ramírez said that the World Bank considers people with daily incomes above US $17 (around 340 pesos) to be middle class. Those earning less than that are considered to be living at various levels of poverty, down to extreme poverty.
The USMCA review is an opportunity to build a competitive, secure energy future for North America, Padilla and Martin write — that is, if the three countries can rise to the occasion. (Jason Hudson / Unsplash)
The recently released U.S. National Security Strategy (NSS) has generated headlines for its sharp tone toward long-standing allies in Europe. Yet for North America, and Mexico in particular, its implications may be even more consequential.
The strategy revives a Monroe Doctrine-style vision — what some observers jokingly call the “Donroe Doctrine” and the U.S. president has referred to as the Trump Corollary — emphasizing U.S. preeminence in the Western Hemisphere, control over migration and illicit drug trafficking, expanded border deployments, and the use of military and economic power to secure access to energy and mineral resources.
Overnight, the White House released its new “National Security Stratregy” document (link in thread)
Several interesting comment re: energy, commodites, and climate change. The tone is similar to what we have already heard from Trump: fossil fuels-centered energy dominance.
What stands out is less the rhetoric than the NSS’s priorities themselves. Migration, drugs and cartels, and border security dominate its focus, eclipsing discussions of China, nuclear proliferation or global alliances.
Militarizing problems that are primarily social and economic could have real consequences for bilateral relations. And yet, Mexico — the United States’ most important economic partner — is barely mentioned along these lines. Energy cooperation, trade integration under the USMCA free trade deal and cross-border supply chains receive virtually no attention.
This omission matters because energy is central to current U.S. strategy and international relations, or perhaps today more accurately, transactions and dealmaking. The so-called “energy dominance” approach of the Trump administration prioritizes energy abundance as a tool of national power and embraces this relatively newfound superpower status to use exports as a foreign policy lever and driver, whether boosting energy security or delivering increased energy access.
In practice, the “energy dominance” approach seeks to maximize U.S. production of oil, gas, LNG, nuclear and even geothermal to strengthen economic and geopolitical leverage. Energy is no longer just a domestic or commercial issue — it is an instrument of diplomacy, trade enforcement and economic bargaining. Make no mistake: It is not just about lowering prices at the pump for American motorists but rather about access to crucial resources and deals favorable to the U.S. across the globe.
This dynamic brings us to U.S.-Mexico relations.
The bilateral relationship is entering a new structural phase. Trade, migration, security and supply chains are all back on the negotiating table. After years of political “pauses,” energy is now central to USMCA 2026 discussions. Congress has underscored the stakes: H.R. 5926, the Mexican Energy Trade Enforcement Act, would empower the U.S. to enforce USMCA energy provisions, including launching dispute panels and investigations, if Mexico fails to comply. This is not symbolic politics — of H.R. 5926’s seven co-sponsors, five are representatives from Texas, the epicenter of cross-border energy trade — and source of a significant amount of Mexico’s natural gas supply. More on that shortly.
Energy companies echo this urgency. Industry groups, from the American Petroleum Institute to the U.S. Chamber of Commerce, have been pressing for credible enforcement, level playing fields versus Mexico’s state-owned enterprises, regulatory stability, predictable permitting and a continental energy security strategy. Their message is clear: Uncertainty undermines investment, innovation, trade and integration.
Mexico’s own energy landscape adds a further wrinkle for Mexican authorities. Roughly 70% of the country’s natural gas is imported from the U.S., and gas generates over 60% of Mexico’s electricity. Given the lack of viable alternatives, planned new generation continues to rely heavily on gas. Imports of natural gas from the U.S. have averaged 6.8 bcfd in 2025 through September, nearly twice as much as a decade ago. Failure to invest in infrastructure to reduce flaring and effectively promote new frontier natural gas production, including the country’s prolific fracking potential, has left Mexico unable to meet rising demand.
At the same time, Mexico’s 2024 constitutional reforms consolidate state dominance over energy, limit regulatory independence and restrict private capital participation. These reforms directly collide with USMCA provisions on market access, investment and state-owned enterprises. The result is a fundamental tension between Mexico’s domestic vision and USMCA’s trade rules.
But beyond what appear to be clear issues on compliance, there should be real trepidation for Mexican negotiators around their energy needs. Without intending to be overly dramatic, these aspects should be recognized as the pressure points they present for the Trump team sitting down at the USMCA table.
Mexico’s depends heaviliy on natural gas imported from the U.S. to generate power for the country — a fact that will give the U.S. additional leverage at the 2026 USMCA review. (Archive)
The stakes could not be higher. Energy security is continental. Investment is global. Affordability and reliability are paramount. And the current Trump administration has demonstrated a real desire to not just rethink longstanding paradigms but completely shatter them.
USMCA 2026 is not merely a procedural review — it is a potential reset with profound consequences. The U.S. wants enforcement but also preferred if not outright access; Mexico wants to protect sovereignty; Canada seeks predictability; energy companies want stability. But how and to what extent the Trump administration plays the “energy card” should not be underestimated and demands attention heading into the new year.
If the three countries embrace vision over friction, North America could anchor a competitive, secure and dominant energy future given the resources it collectively possesses. If not, cross-border activity may be marked by even greater uncertainty and strained investment.
The U.S.-Mexico energy relationship is indispensable — but at a delicate crossroads. How policymakers navigate the next chapter will shape not only North America’s energy security but the continent’s economic and competitiveness for years.
Jeremy M. Martin is Vice President for Energy and Sustainability at the Institute of the Americas, an inter-American public policy think-tank located at the University of California, San Diego.
John D. Padilla is Managing Director of IPD Latin America, LLC, a Colombia-based consultancy with decades of experience in Mexico.
Nothing adds to holiday cheer like an extra paycheck. (Shutterstock)
The Christmas season has arrived, and with it comes the aguinaldo, a yearly holiday bonus that employers in Mexico are legally required to give to their employees. Here is everything you need to know, as an employer or employee.
Who is entitled to the bonus?
All employees, including domestic workers, are entitled to the bonus under the terms of the Federal Labor Law.
Seasonal or part-time employees are also entitled to a bonus, proportionate to the number of hours they’ve worked.
People hired as independent contractors are not entitled to the bonus unless there is an employment agreement between the two parties.
Employees who have quit or been laid off are also entitled to a bonus, proportionate to their employment period.
The aguinaldo is an important bonus at Christmastime, which many Mexicans use to pay for the extra expense of the holiday season. (Roger CE/Unsplash)
How do you calculate the bonus owed?
It must be equivalent to a minimum of 15 days of salary for all employees who have completed a full year of service.
Those who have not completed a full year of service are entitled to receive a proportionate share of the bonus depending on the number of weeks or months the employee has worked.
For example, to calculate the bonus of an employee who has worked for six months, these are the steps to follow:
Divide the net monthly salary by 30 to get your daily pay rate.
Multiply the daily pay rate by the minimum 15 days of salary to get the standard bonus amount.
Divide the standard bonus amount by the total number of days in a year.
Calculate the number of days the employee worked (which in this example is 180 days for six months – (calendar days).
Multiply the number of days the employee worked by the proportional bonus quota to get the final bonus amount.
If the worker’s salary is variable, their income must be based on the daily average obtained over the last 30 calendar days of effective work.
Amounts greater than 30 days of the minimum wage are taxable. (Crisanta Espinosa Aguilar/Cuartoscuro)
When is it due?
The bonus must be distributed by Dec. 20.
Is the bonus taxable as income?
Yes, if the amount exceeds 30 days of minimum wage.
Beautiful Lake Chapala in Mexico has a tragedy in its past. (Unsplash/Paulina Vazquez)
Very few people know today that a steamship once sailed on the waters of Mexico’s largest lake. Her name was Libertad (Freedom), and her splendorous life would end abruptly on March 25, 1889, when she sank carrying 200 passengers.
Libertad was the first steamboat to sail Lake Chapala and one of the greatest symbols of modernity in Western Mexico. The ship was inaugurated in 1868 by the Chapala Lake Steam Navigation Company, founded and managed by Scottish businessman Duncan Cameron.
Libertad and Ocotlán
For two decades in the 19th century, the steamship Libertad was a popular way to travel on Lake Chapala. (Facebook)
During its golden years, Libertad was used for Sunday outings and social events from the region’s upper classes. It also carried goods from the area, such as fruits and seeds that would be merchandised to other parts of Mexico through the Ocotlán train station.
Back then, Ocotlán was a strategic city for commerce and travel as it had a modern train station that was part of the national railway network. Ocotlán was the gateway to other parts of Mexico, including Guadalajara, Mexico City and even Ciudad Juárez in the north.
Picture wealthy tourists from Jalisco and neighboring states stepping down from train cars at Ocotlán’s modern train station, eager to be taken to the dock to board Libertad. Once on board, travelers were treated with refreshing drinks and snacks while a band played popular songs of the time.
Libertad’s layout and voyages
The steamship made voyages between Ocotlán and La Barca, stopping in Chapala, Jocotepec, Jamay and Tuxcueca. Along the way, tourists enjoyed scenic views that featured mango and papaya orchards, lakeside villages and herons flitting among floating lilies. Thanks to two chain drives that powered the propeller blades at the stern, Libertad could navigate at up to 15 kilometers per hour.
The ship had three spacious levels. The first one housed the boiler, which stored firewood, coal and corncobs, while also providing space for cargo and crew. The second level was dedicated to passengers and could carry up to 100 people. Finally, the third level housed the captain’s cabin.
Reports of the time say that Sundays were particularly busy, with many families looking to board Libertad and sail along the Ribera. It was precisely on a spring Sunday that, due to high demand and relaxed rules, Libertad welcomed more passengers than it could safely host.
The day of the tragedy
Legend has it, the desecration of a temple in Jamay, Jalisco, led to divine retribution in the sinking of the Libertad. (Gobierno de Jamay)
Reports from that time say that on the day of the tragedy, the steamship was carrying some 200 passengers, including children. Legend has it that the cause of the disaster was not overbooking but rather a form of divine punishment, as the passengers had desecrated a church in Jamay.
Eyewitness accounts reveal that the passengers spent the entire morning sailing. Upon arriving in Jamay, they entered the church and began to dance. Witnesses reported that some of them desecrated the saints by placing cigarettes in their mouths and mocking the religious images.
As the steamship returned to Ocotlán before sunset, intoxicated passengers began dancing and running on an already overloaded upper deck. The violent movements caused the ship to rock, allowing water to enter the vessel.
The sinking of the Libertad
Reportedly, the ship was approaching the port of Ocotlán at approximately 4:30 pm, as it sailed the Zula River. But some 15 meters from the dock, many passengers — either frightened or eager to disembark — crowded onto the starboard side (bow), causing the ship to list. The vessel then struck a submerged tree trunk, causing those on board to fall into the water. Within minutes, the ship sank completely after water entered the boiler, creating a jet of steam that trapped those on the first deck.
The river was immediately filled with people, with entire families being swept away by the current. Laments and cries for help contrasted sharply with the merriment and laughter of just moments before.
The tragedy claimed the lives of 28 people, including children.
The heroes of the Libertad tragedy were honored in a special ceremony at Guadalajara’s Teatro Degollado. (Roman Lopez/Unsplash)
Many townspeople who participated in the rescue efforts were honored as heroes in a special ceremony on Sept. 16, 1889, at the Teatro Degollado in Guadalajara. Fifteen residents of Ocotlán received medals from General Ramón Corona, the state governor.
A second life
Following the accident, the vessel was ultimately salvaged and taken to Chapala, where it was blessed in an effort to remove the negative impression left on the victims and residents of Ocotlán. This blessing also aimed to atone for the sacrilege committed by the passengers in the Jamay temple.
Yet, locals refused to board Libertad again, and its owners were obliged to take it to Lake Pátzcuaro in the neighboring state of Michoacán, where it was renovated and renamed as Don Vasco. The boat had a second life and sailed on Pátzcuaro Lake well into the 20th century.
Gabriela Solis is a Mexican lawyer turned full-time writer. She was born and raised in Guadalajara and covers business, culture, lifestyle and travel for Mexico News Daily. You can follow her lifestyle blog Dunas y Palmeras.
If you're buying or selling a home in Mexico, residency has benefits. (CDR San Miguel)
Many foreigners who choose to make Mexico their long-term home eventually find that residency offers more than legal permission to stay. It influences daily life, access to services, and even the financial outcome when buying or selling property.
Although Mexico allows nonresidents to own real estate, holding legal residency often simplifies the process and can significantly affect capital gains tax obligations at the time of sale.
How to get legal residency
There are two residency card options in Mexico, each with different expectations and benefits. (INM)
Mexico offers two main residency options: temporary and permanent. Both allow foreigners to stay in the country beyond the 180-day tourist permit, but each category carries different expectations and benefits.
Temporary residency is generally issued for one year at the beginning of your immigration to Mexico and may be renewed for up to four years. After that period, most residents become eligible to convert to permanent residency, which does not expire and removes the need for renewals. Permanent residents may work in Mexico without obtaining an additional work permit, although they must register with the tax authority and notify immigration afterward.
In all cases, the residency process begins at a Mexican consulate outside of Mexico and is completed at an immigration office (INM) once the applicant enters the country with the approved visa.
Some consulates will issue permanent residency directly — for example, to retirees, spouses of Mexican citizens, or parents of Mexican-born children. Many consulates, however, decline to grant permanent residency to applicants below retirement age the first time around unless they qualify through family relationships or specific categories.
In some cases, applicants who already hold temporary residency and live in Mexico may be permitted to convert to permanent residency earlier than the four-year period, depending on the criteria applied at their local immigration office.
What you’ll need to apply
The financial requirements for residency are based on either monthly income or savings and investments. These thresholds, published by the Secretaría de Relaciones Exteriores, vary slightly between consulates and may change at any time because they are tied to Mexico’s minimum wage or UMA values — the latter being a monetary number updated annually that is used to calculate fines, payments and tax obligations in Mexico.
To receive a resident card in Mexico, you must show a minimum monthly income or bank balance. Once acquired, residency makes access to banking in Mexico easier. (Shutterstock)
Under the commonly applied standards, temporary residency generally requires a monthly income of about US $4,393 or an average balance of more than $73,215 over 12 months.
Permanent residency typically requires a monthly income above US $7,322 or an average balance above $292,859 over 12 months. All financial documents must match the applicant’s passport information exactly, without any variations in spelling or punctuation.
At a Mexican consulate outside the country, applicants present their financial documents, identification and any materials related to employment, investment or family ties. If the application is approved, the consulate places a visa sticker on the applicant’s passport. This visa allows entry into Mexico for the second phase of the process, which must be completed within a limited number of days.
Once inside the country, applicants visit the National Migration Institute (INM) to submit photographs, fingerprints and final documents. Temporary residents renew this information annually; permanent residents do not.
The advantages of residency when buying and selling property
Residency is not required to purchase property in Mexico. Foreigners may buy real estate anywhere in the country, including along the restricted coasts and borders, which technically is off-limits to foreigners. In these restricted zones, however, non-Mexicans typically use a fideicomiso, a bank trust that legally holds title on behalf of the foreign buyer, allowing a purchase.
Outside the restricted zones, property can be titled directly in the buyer’s name.
Having a residency card makes real estate transactions in Mexico go smoother. (CDR San Miguel)
Even though residency is not a prerequisite for ownership, and foreigners may purchase real estate with only a valid tourist entry card, having a residency card can make transactions smoother.
Banks, escrow companies and notaries frequently prefer a residency card for identification. Residency also eliminates concerns about leaving the country when a tourist entry card expires, which can be disruptive during closings, renovations or long-term stays.
Avoiding capital gains tax
The most significant advantage of residency appears when selling property. Under Mexican tax law, temporary and permanent residents may qualify for a full or partial exemption from capital gains tax when selling their primary residence. For many homeowners, this exemption represents substantial savings, particularly in cities where property values have appreciated quickly.
Non-residents, by contrast, generally face much higher tax liabilities: They may be taxed at a flat 25% of the total sale price, with no deductions, or at approximately 35% of the net gain, depending on how the notary calculates the transaction.
To qualify for the capital gains exemption, however, the seller must meet several conditions:
The property must be the seller’s principal residence, not a vacation home, rental investment or raw land.
The seller must be able to prove occupancy, often through recent utility bills, a residency card, voting documents — in the case of Mexican citizens — or other forms of acceptable proof.
The seller must not have used the exemption on another property within the period allowed by law, typically once every three years.
When all requirements are met, the notary may apply the exemption, reducing or eliminating the capital gains tax due.
Having a residency card may even help you avoid paying capital gains tax when you sell a property in Mexico. (CDR San Miguel)
Nonresidents, including foreigners who rely on tourist permits, generally do not qualify for this exemption and often face significantly higher tax liabilities at closing. For long-term foreign residents who intend to eventually sell their home in Mexico, obtaining residency well in advance makes sense.
Not just at tax time: A residency card makes daily life easier
Residency also simplifies many aspects of daily life for foreign homeowners. It allows easier access to banking, facilitates the registration of utilities and services and supports compliance with tax obligations related to rental income. While nonresidents can handle these tasks, the processes tend to be more straightforward for those with a residency card.
For many foreigners, the decision to pursue residency depends on how they plan to live in Mexico. Buyers who expect to spend most of the year in their home, or who anticipate selling it in the future, gain the most from being a legal resident. Investors who plan to manage multiple properties or conduct long-term business in Mexico also benefit from holding residency.
All applicants should keep in mind that immigration rules, UMA values, minimum wage-based calculations and financial thresholds can change at any time. Unlike what you may be used to back home, requirements also vary from one consulate to another and from one immigration office to another in Mexico. Before applying, it is important to confirm up-to-date requirements through official channels or with qualified professionals.
Glenn Rotton is a real estate agent with eight years of experience in San Miguel de Allende. Originally from Seattle, he has lived in Mexico for twelve years with his husband, Kiang Chong Ovalle, and their dog, Angus. Read more about Glenn here.
