Agriculture is both the biggest user of water in Mexico, and one of the first sectors to suffer when water is scarce.
(Shutterstock)
As drought deepens in Mexico, the National Water Commission on Thursday presented a plan that officials hope will save 2.8 billion cubic meters of water across the country.
Water commission (Conagua) officials on Thursday said theupdated National Irrigation Modernization Program aims to upgrade systems that will affect 200,000 hectares of irrigable land in Mexico, reducing agricultural water waste.
Efraín Morales, director of Conagua, shared the plan to upgrade Mexico’s agricultural water infrastructure at the president’s Thursday morning press conference. (Daniel Augusto/Cuartoscuro)
During her morning press conference, President Claudia Sheinbaum said her administration plans to invest 51.8 billion pesos (US $2.5 billion) during her six-year term to modernize the nation’s irrigation systems. She said the system overhaul will increase productivity.
“[The hydro-agriculture sector] will see greater production with less water,” she said, “freeing up 2.8 billion cubic meters [of water] … for human consumption.”
Hydro-agriculture is akin to small-scale irrigated agriculture, in contrast to hydraulic agriculture which is large-scale farming which involves the use of fluid power to operate machinery, control implements, and perform various tasks on the farm.
Sheinbaum said the transition is not as simple as installing new technology and watching it work. The system overhaul requires a comprehensive organizational plan at the individual farm level and at the federal irrigation district level.
The government hopes more efficient hydro-agriculture will resolve the perennial shortage of water for human consumption, a problem that resulted in chatter about a potential “Day Zero” in Mexico City last year.
Calling the program unprecedented, Efraín Morales, director of the water commission (Conagua), said it is of utmost importance because 76% of the nation’s water is utilized in agriculture.
“The modernization program is not just about resolving existing problems,” Morales said, referring to aging canals and leaky irrigation infrastructure. “The president has instructed us to look for alternatives that allow for more efficient use of water in productive processes as well as in matters of social consumption.”
Morales reiterated Sheinbaum’s goal of producing more food with less water so as to increase drinking water availability. He added that some of the recovered water would be used to recharge the nation’s aquifers.
Mexico is addressing water scarcity by promoting modern, more efficient irrigation systems to reduce agricultural water waste. (Government of Mexico)
He said the long-term goal is to find and implement solutions that will make Mexico’s countryside sustainable.
By the end of this year, Conagua hopes to repair or replace 315 kilometers of irrigation canals, potentially reducing water use by 25%, Morales said. Another 43 kilometers of canals will be replaced with pipes, protecting the water from evaporation and reducing water loss by 40%.
The program will also pay for modern floodgates — both mechanized and manual — to make distribution and storage more efficient. Telemetry systems will also be installed in some locations to measure water usage and distribution.
Beyond simply repairing canals to prevent leaks, the program focuses on teaching responsible water use. Among the activities Conagua is emphasizing is working with farmers to avoid over-irrigating their fields
Conagua will also even out farmlands, with plans to level 10,500 hectares this year alone. This process will allow for more uniform irrigation while limiting puddling and run-off.
The program will also work to install aspersion and microaspersion irrigation systems to better control the amount of water and delivery timing.
Aarón Mastache, assistant director of Conagua’s hydro-agriculture infrastructure division, explained that the program will primarily focus on 13 of Mexico’s 86 irrigation districts. These targeted districts are located near urban centers that are experiencing water shortfalls, he said.
So far 10 irrigation districts — in Sinaloa, Morelos, Aguascalientes, Tamaulipas, Guanajuanto, Coahuila and Durango — have signed up for the program. Two of the remaining districts, both in Chihuahua, are expected to climb aboard next week. Officials in the last district, in Baja California, are negotiating the conditions of its inclusion.
Mastache explained that the program budget will come from three sources: the majority of funds will come from the federal government, but state governments and farmers will also contribute, though he did not specify percentages.
Mexican driver Checo Pérez is looking to get back in the game. (Sergio Pérez/Facebook)
Sergio “Checo” Pérez’s absence from Formula 1 circuits might be a short one as the Mexican driver is reportedly negotiating a return to the track with debutante F1 team Cadillac, who are set to enter the sport in 2026.
Mexico’s most successful racer, Checo appears to be on the verge of making a dramatic return to Formula 1 — considered the pinnacle of motorsports — just one season after his acrimonious exit from Red Bull Racing, which would see him getting behind the wheel again with the fresh new project.
Cadillac will become the 11th team in Formula 1 starting next year. (Cadillac)
General Motors’ luxury brand Cadillac is set to enter Formula 1 in 2026 as the 11th team on the grid, in partnership with Andretti Global. Fox Sports reported this week that Checo — a six-time Grand Prix race winner — has been discussing the prospect of signing with Cadillac.
Mario Andretti, former F1 champion and the advisor on Cadillac’s board of directors, declined to comment on rumors that the team was in final talks with Checo: “There are more drivers available than teams at the moment,” he told Fox Sports. “Ten teams seems a lot, but … from our standpoint, I think the play at the beginning would be to have one experienced driver — nationality doesn’t matter — and then a young American talent.”
Cadillac first made public its interest in joining F1 in January 2023. Andretti, who operates a number of successful teams in other motorsport categories, including Indycar and Formula E, launched a failed bid with GM as engine partner.
The bid was rejected after resistance from established teams. Then Dan Towriss replaced Michael Andretti (Mario’s son and former McLaren driver, who had a brief and troubled career in F1) at the top of the Cadillac project and a renewed bid was met with approval in late 2024.
Pérez, 35, has driven for four different F1 teams in his career. (Sergio Pérez/Facebook)
Formal approval was granted to Cadillac on March 7, after the team paid an entry fee of US $450 million, to be be split among the other 10 teams as compensation for the dilution of prize money.
With 14 years of experience in F1, Checo certainly has the résumé to serve as the experienced driver Cadillac is seeking to help guide the project through its infancy.
The 35-year-old Pérez has driven for four different F1 teams, getting his start with Sauber in 2011. Checo claimed his first podium in his second season, then spent one year with McLaren before moving on to Force India ahead of the 2013 season. After scoring his first win with the rebadged team at the 2020 Sakhir Grand Prix, he was promoted to the second seat at Red Bull Racing, finishing second in the 2023 Championship. Despite the promising start, Checo gradually fell away from championship contention and as a result, his contract was terminated early at the end of the 2024 season.
F1 blog TheJudge13.com points out that as the face of the nascent project, Checo would be under extra pressure. As the team’s lead driver, Pérez’s role could include on-track duties, as well as a significant role in shaping car development and engineering feedback while also mentoring teammates.
Walmart plans to open more Aurerra and Sam's Club stores, along with Walmart Supercenters and Walmart Express. (Graciela López Herrera / Cuartoscuro.com)
Walmart has announced a multi-billion dollar investment in Mexico to expand its operations in the country, adding stores and opening new distribution centers in Tlaxcala and the Bajío region.
During President Claudia Sheinbaum’s Thursday morning press conference, CEO of Walmart Mexico and Central America Ignacio Caride said that the retail giant will invest US $6 billion to open more stores and establish two new next-generation distribution centers in Mexico.
Caride said that the investment will create over 5,500 jobs in addition to the 200,000 jobs Walmart already provides in Mexico.
“As part of the investment, this year we will open more stores in our Aurrera, Sam’s Club, Walmart Supercenter, and Walmart Express formats, creating approximately 5,500 direct jobs,” Caride said.
The new stores will add to the 3,200 stores that already operate in all 32 states of Mexico.
“Walmart de México’s mission is to help people save money and live better across the country,” Caride said. “To achieve this, we’re strengthening our long-term commitment to this great country.”
Walmart Mexico CEO Ignacio Caride shared the news during Thursday’s presidential press conference. (Presidencia)
The new state-of-the-art distribution centers will be built in the Bajío region and in the state of Tlaxcala. These centers will be equipped with robotics and artificial intelligence applications, supplementing the 21 distribution centers already operating Mexico.
Ximena Escobedo, head of the Institutional Strategy and Organization Unit of the Economy Ministry, said Walmart’s investment is very important for Sheinbaum’s economic plan, Plan México, for two reasons. First, because Walmart has 30,000 suppliers, with 85% being small and medium-sized businesses. Second, because 83% of products sold in Walmart stores across the country are made in Mexico.
“For over a decade, we have supported small agricultural producers in Mexico to help them formalize their operations, grow, access financing and become our direct suppliers without intermediaries,” Caride highlighted.
In a separate announcement, Walmart Mexico reported through the Mexican Stock Exchange that its capital expenditure for 2025 will amount to approximately 41.8 billion pesos (US $2 billion) for all of Mexico and Central America — 20% more than the 34.8 billion pesos (US $1.7 billion) invested in 2024.
Sheinbaum’s ambitious Plan Mexico seeks to place Mexico among the top 10 economies in the world through investment incentives and collaboration between the government and the private sector.
Is climbing the pyramids at the Teotihuacán religious complex a right reserved to the gods? The INAH says yes. (Mario Jasso/Cuartoscuro)
In the beginning of times, when nothing was as we know it today, the gods gathered around the sun. When they all took their places, say theancient scriptures, they sat and decided to create the world. Many attempts were made; many beings were created and destroyed. After many efforts, Quetzalcóatl, the feathered serpent god, set out to the underworld to talk to Mictlantecuhtli, the lord of the dead, who had the last bone in the cosmos, needed to create the perfect being.
They settled that the bone must be split in two, so that each of them could keep a part for themselves. Quetzalcóatl returned to the other gods with the coveted piece of bone, which they finally used to create the first human beings. In their honor, when several men and women were created, the newly born humans built a holy city. That was how, according to the Mexica who discovered the long-abandoned city when they migrated into Central Mexico, the magnificent Teotihuacán came to be.
The holy city of Teotihuacán was the largest in present-day Mexico, and the most influential politically and commercially in the Mesoamerican region. (Beatriz Quintanar Hinojosa/INAH)
The National Institute of Anthropology and History’s (INAH) records suggest that this archaeological site in present-day México state was constructed around the year 200 BCE. In the very beginning, farming communities occupied it and built its foundations. However, they quickly established commercial relationships with the neighboring towns, which eventually became the largest commercial network in Mesoamerica. Archaeological remainsshow that this interregional trade reached the Maya, and had major political influence in the Yucatán peninsula during the Preclassic and Classic Maya periods.
We don’t know what the inhabitants of Teotihuacán called themselves: the city’s name, translated as “where the gods were created” or “where men became gods,” was given to it by the Aztecs who found it 1000 years after its foundation. But the Teotihuacanos built the largest city in ancient Mesoamerica, the cultural region spanning from present-day central Mexico to Costa Rica. With an area of over 22 square kilometers, Teotihuacán “was one of the cultural centers of the region,” INAH authorities say, and had “stylistic and architectural influences” that reached the Maya in Guatemala and Honduras.
Why can’t people climb the pyramids anymore?
Mexicans today have a shared awe for the ruins of Teotihuacán. I first went to the site as a child, climbing the Pyramid of the Sun and crying in fear of falling when we had to go down the pyramid’s 238 steps.
Children today, sadly, will not have the same memories as I do. In 2020, INAH authorities announced a new prohibition: visitors would no longer be allowed to climb the structures in the complex.
The author was privileged enough to climb the pyramids while the Teotihuacán site authorities allowed it. Visitors today are not as lucky. (Maciej Cisowski/Pexels)
“Neither the footwear nor the number of visitors (some days saw 15,000 visitors daily) were the same,” writes Alejandro Alcolea, journalist and editor of the scientific magazineXataka México.
The decision was taken to preserve the ancient structures, as happened in other archaeological sites, like Chichén Itzá. Although the pyramids at Teotihuacán were largely reconstructed after excavation in the early 20th century, their preservation is a priority for the INAH, and visitor safety is a consideration as well.
Researchers and the press need special permission to take photos of the pyramid or conduct any activity on the structures. Heavy fines are meted out to those who violate these restrictions.
Depending on the severity of the conduct, fines span from 500 to 100,000 pesos depending on how badly the structure was damaged, and irreparable damage is punishable by jail time. Violators have also faced angry crowds: on March 20, a German visitor who climbed the Temple of Kukulkán in Chichén Itzá, Yucatán was booed and struck by other tourists who had gathered to watch the spring solstice at the complex before being taken into custody by National Guard officers.
You can still see Teotihuacán from up high
If you really want to see the Teotihuacán from above and aren’t afraid of heights, you still have options, namely a hot air balloon ride above the ruins. Nothing compares to the sight of the Teotihuacán valley at sunrise on a cold morning.
Prices start at 2,300 pesos, and you can enjoy the best panoramic view of the site. You can check out the packages and experiences atTripadvisor, and choose whatever fits your needs best.
In any case, you have to be an early bird. The activities start early, and you are usually expected to be present at San Juan Teotihuacán at 5 a.m. The longest ride is about 3 hours long, but you can always choose shorter versions.
If you are taking the hot air balloon ride, come prepared! Mornings are usually chilly, so be advised to bring a jacket with you, and some sunblock, too, because the Sun is heavy as the day continues. As dawn breaks, you’ll surely get a glance at mighty Quetzalcoatl, soaring among the clouds.
Andrea Fischer contributes to the features desk at Mexico News Daily. She has edited and written for National Geographic en Español and Muy Interesante México, and continues to be an advocate for anything that screams science. Or yoga. Or both.
Santa Fe was once a municipal dump. Now it's one of the capital's most modern and affluent neighborhoods. (Reddit)
Standing on the western edge of Mexico City, Santa Fe presents a startling vision of modernity. Glass-and-steel skyscrapers rise dramatically against the backdrop of the Sierra del Monte de las Cruces, reflecting the afternoon light off their mirrored surfaces. Logos of the world’s biggest brands — names like IBM, Microsoft and Santander — sit atop these towers, making their mark in the neighborhood now known as Mexico’s premier business district. At its heart lies Parque La Mexicana, an expansive green space with jogging paths, man-made lakes, and manicured gardens, designed to offset the concrete sprawl and provide much-needed green space for residents and visitors alike.
Mirrored towers: Santa Fe’s modern society
Parque La Mexicana is a perfect example of what attracts residents to modern Santa Fe — but it wasn’t always like this. (La Mexicana)
Santa Fe is home to thousands of residents, predominantly upper-middle-class professionals and expatriates. During weekdays, the population swells significantly as tens of thousands of commuters arrive for work. The area has also become an educational hub, attracting students to six major universities located here: Universidad Iberoamericana, Tecnológico de Monterrey, CIDE, Universidad Panamericana, UAM, and UVM.
Centro Santa Fe, a major shopping destination, anchors the district’s retail offerings. This sprawling commercial hub stands as a testament to Santa Fe’s outsized economic importance to Mexico City. Recent developments, such as the Distrito Santa Fe project, aim to create a more integrated living community. This ambitious plan envisions adding diverse residential options, further enhancing Santa Fe’s appeal.
Beyond this modern façade, deep ravines and informal settlements border the edges of this futuristic capsule of Mexico City. Public transportation remains notably scarce, forcing inhabitants and commuters to rely heavily on cars to navigate the area. This dependency contributes to two significant issues affecting Mexico City’s quality of life: increased traffic congestion and worsening air pollution.
From waste to wealth: Santa Fe’s transformation
The district wasn’t always glittering towers and parks. (Entre Ladrillos)
In the 1980s, the Mexican government had a vision — to transform what seemed like undeveloped space in Santa Fe into a neoliberal utopia. However, the area’s history was far from empty. The steep gulches and unstable volcanic soil had, until then, made it unsuitable for traditional urban development. In fact, by the 1950s, it served as a dumping ground for 3,000 tons of daily waste. The dump operated under Luis Tellez, the government-appointed “dump boss,” with streets named after recyclable materials— “Cardboard,” “Glass,” and “Aluminium” — reflecting the sorting activities that took place there.
Engineers compacted trash and layered sand on top in an attempt to stabilize the ground, enabling building construction. The real boom began in the 1990s with the opening of the Santa Fe Mall. That was quickly followed by an expansion of commercial and residential projects. Upper-middle-class families, corporate expats, and university students started flocking to Mexico City’s trendiest neighborhood, resulting in the mix of residents we see today.
Forgotten communities: The displacement of pepenadores
The transformation of Santa Fe required the displacement of the pepenadores, or waste pickers. Their livelihoods depended on the dump, where they earned income by separating recyclable materials and selling them to local businesses. The relocation process, which started in 1987 and took over 15 years to complete, showcased the human cost of such urban development.
Mexico City’s pepenadores live a precarious existence, surviving on finds in various municipal dump sites, like Bordo de Xochiaco, seen here. (Andrea Murcia/Cuartoscuro)
In Carina Frykman’s essay “The Power of Waste,” we learn that government officials relocated 800 pepenador families to peripheral zones like Tlatel Xochitenco. Aside from the financial setbacks that came with it, the families faced significant challenges, including the dismantling of their tight-knit community and ongoing health issues. Studies highlighted the severe health risks faced by dumpsite scavengers, including respiratory issues, digestive problems, skin rashes, infections, and sexually transmitted diseases.
Cracks in the façade: Santa Fe’s infrastructure challenges
Santa Fe’s rapid development resulted in inadequate infrastructure planning, and today’s inhabitants face a crosshatch of ongoing challenges.
Traffic congestion: The enclave’s car-centric design provides limited access to Mexico City’s subway, trains, or rapid transit bus systems, making transportation a serious issue. At one point, commuters were spending an average of 26 days a year traveling to and from work in Santa Fe. More recently, the government introduced CableBus Line 3 — an aerial cable car system — to alleviate congestion, though with mixed results.
Santa Fe has grown so quickly that infrastructure has struggled to keep up with it. (Expedia)
Health hazards: As one might expect of a garbage dump that wasn’t properly excavated, the decaying trash beneath emits methane, contributing to dangerous PM2.5 levels that frequently exceed World Health Organization safety limits. This is in addition to a dangerously high level of greenhouse gas emissions from the abundance of vehicles.
Water management: Despite Mexico City’s severe water crisis, development proceeded with minimal planning for basic utilities. More than 1,200 luxury homes discharge sewage directly into ravines or groundwater systems due to the absence of a proper sewer network. Many buildings depend entirely on daily water deliveries by tanker trucks because they lack connections to the public water system.
Lessons from Santa Fe’s experiment
Santa Fe’s transformation represents one of Latin America’s most ambitious urban renewal projects — a megaproject that dramatically reshaped Mexico City’s western edge. It also reminds us that anything impressive must start with a solid foundation.
Today, Santa Fe stands as both an achievement and a warning. On the bright side, major international corporations provide employment for thousands. On the dark side, environmental challenges and unstable living conditions, both in and outside of the immaculate haven, remain a struggle. While Mexico City is making recent progress in terms of waste management, Santa Fe, the city built on waste, shows that urban development must address environmental realities, not conceal them. Even the most impressive architectural achievements may ultimately rest on shaky foundations – both literally and metaphorically.
Bethany Platanella is a travel planner and lifestyle writer based in Mexico City. She lives for the dopamine hit that comes directly after booking a plane ticket, exploring local markets, practicing yoga and munching on fresh tortillas. Sign up to receive her Sunday Love Letters to your inbox, peruse her blog, or follow her on Instagram.
The peso's tumble came after U.S. President Trump announced that a long-threatened 25% tariff on imported vehicles manufactured in Mexico was finally taking effect, after a month of reprieve and uncertainty. (Shutterstock)
The peso closed at 20.30 to the dollar, according to the Bank of Mexico (Banxico), a depreciation of 0.8% compared to its closing position of 20.14 to the greenback on Wednesday.
Major automakers operating in both Mexico and the U.S. now face questions about whether to remain invested in Mexico or shift operations to the U.S. to sell more cheaply to the United States market. (Omar Martínez/Cuartoscuro)
The depreciation might have been more pronounced if vehicles made in Mexico were to be subject to the full 25% tariff.
As U.S. content in vehicles assembled in Mexico will be exempt from the duty, the effective tariff on Mexican-made vehicles will be lower — 15% on a car with 40% U.S. content, for example.
The peso’s depreciation on Thursday puts the currency at its weakest position since March 10.
The Bank of Mexico’s governing board voted on Thursday in favor of lowering the central bank’s key interest rate by 50 basis points to 9%.
Governors with Mexico’s central bank issued a statement after their meeting on Thursday saying that they had lowered its key interest rate to 9%, given that Mexico’s disinflation project remains “well on track.”
In a statement, Banxico said that its governing board “deemed that the disinflation process remains well on track and reiterated that the fight against inflation is at a stage where the aim is to bring inflation from its current level, around its prepandemic historical average, to the 3% target.”
“… The board estimates that, looking ahead, it could continue calibrating the monetary policy stance and consider adjusting it in similar magnitudes. It anticipates that the inflationary environment will allow it to continue the rate-cutting cycle, albeit maintaining a restrictive stance,” the bank said.
“[The board] will take into account the effects of the country’s weak economic activity. … Actions will be implemented in such a way that the reference rate remains consistent at all times with the trajectory needed to enable an orderly and sustained convergence of headline inflation to the 3% target during the forecast period,” Banxico said.
When Banxico’s lower rate takes effect on Friday, official borrowing costs in Mexico will be double those of the United States, where the Federal Reserve’s federal funds rate is currently set at a range of 4.25%-4.5%.
The Mexican peso was supported for an extended period by the difference between the interest rate in Mexico and that of the Fed, but depreciated sharply in late 2024 after the ruling Morena party’s comprehensive victory in last June’s federal elections.
However, U.S. content in vehicles assembled in Mexico will be exempt from the duty, lowering the effective tariff on Mexican-made vehicles (See Mexico News Daily’s report here).
Mexico’s Economy Minister Marcelo Ebrard phoned in to President Sheinbaum’s press conference from the United States, where he is meeting with trade officials there to try and argue for a trade deal beneficial to Mexico. (Presidencia)
Economy Minister Marcelo Ebrard joined Sheinbaum’s mañanera via video link from Washington, D.C., where he has been discussing trade issues, including tariffs, with U.S. officials.
Here is a recap of his remarks with regard to the new auto tariff announced by Trump on Wednesday.
‘This is a major change to the trade system’
“Yesterday, as the presidenta already mentioned, President Trump announced … the decision to impose 25% tariffs on vehicles imported into the United States,” Ebrard remarked.
“This is a major change to the trade system in itself,” he said.
Ebrard highlighted that Mexico’s auto industry and auto parts industry are both “very significant.”
“… We export almost 3 million vehicles to the United States [annually] and we supply 40% of all the auto parts that are used here in the United States,” he said.
‘What we have to do is seek preferential treatment for Mexico’
After noting that he and other Mexican officials have met six times with United States Commerce Secretary Howard Lutnick, and on a number of separate occasions with U.S. Trade Representative Jamieson Greer, Ebrard made it clear what Mexico wants from its northern neighbor.
“If they’re going to change the system, if we’re going to go to a system of such high tariffs, what we have to do is seek preferential treatment for Mexico so that we have the conditions to protect jobs and the economic activity of Mexico,” he said.
Asked by reporters on Wednesday whether there were any conditions under which he would lift the auto tariff, President Trump said it was “permanent.”
Vehicles made in Mexico will get a tariff ‘discount’
Ebrard highlighted that the U.S. content in vehicles made in Mexico has increased in recent years.
“In the majority of the brands that are in Mexico, the [U.S.] component is now a more or less significant percentage,” he said.
Economy Minister Marcelo Ebrard has spent much of the last month in Washington, D.C., negotiating tariff deals. (File photo/Twitter)
Ebrard explained that vehicles made in Mexico will consequently get a “discount” on the 25% tariff announced by Trump.
According to Guillermo Rosales, president of the Mexican Association of Automotive Distributors, a vehicle made in Mexico for export to the United States has, on average, 40% U.S. content. The effective tariff on a vehicle assembled in Mexico with 40% U.S. content would be 15%. Of course, the tariff could be higher or lower than that level depending on the percentage of a particular vehicle’s U.S. content.
The fact that a lower tariff rate will apply to vehicles made in Mexico is “a very important point,” Ebrard said.
Mexican auto parts tariff won’t take effect on April 2
In a fact sheet, the White House said that “USMCA-compliant automobile parts will remain tariff-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection (CBP), establishes a process to apply tariffs to their non-U.S. content.”
As a result, Mexican auto parts that fall under the North American free trade pact won’t face tariffs on April 2, Ebrard said.
It was unclear how soon the process to apply tariffs to non-U.S. content in auto parts would be established.
Ebrard said that he is engaged in talks with the U.S. secretary of commerce aimed at protecting Mexican auto parts from tariffs.
He reiterated that Mexico supplies 40% of all auto parts used in the United States.
“To say it more clearly, that means you can buy a vehicle made in the United States but it has 40% Mexican components,” Ebrard said. “So we said [to U.S. officials]: ‘How are you going to charge a 25% tariff on Mexican auto parts?”
The auto tariff can’t be charged more than once
Ebrard also said that parts that cross borders within North America several times during the automotive manufacturing process won’t be taxed each time they enter the United States.
“As I once explained in the [president’s] mañanera, … a piston [can] cross the border seven times. Imagine [the cost] if the 25% [tariff], or whatever percentage it is charged, seven times,” he said.
For years, major automakers have divided their manufacturing processes between the U.S. and Mexico, meaning that auto components and partially finished vehicles are shipped between the two countries, sometimes more than once. (Omar Martínez/Cuartoscuro)
“It was already clearly established that this won’t happen,” Ebrard said.
The economy minister said that the tariff “discount,” Mexico’s desire to avoid tariffs on Mexican auto parts and the establishment of a rule preventing auto parts from being taxed on multiple occasions were the focus of his most recent discussions with U.S. officials.
“In summary, what we’re seeking in the end is that products made in Mexico are better priced than those of any other country, like Germany, Japan, South Korea or any other country that also exports to the United States,” Ebrard said.
“That is the preferential system that the president has asked us to organize,” he said.
In an ‘ideal world,’ there would be no tariffs
Ebrard said that in an “ideal world,” there would be no tariffs on trade, but he acknowledged that choosing to adopt a protectionist posture or not “is a decision for all the countries of the world.”
The economy minister also said that he has personally been treated “very well” by U.S. Commerce Secretary Howard Lutnick.
“Every week, he has welcomed me with pleasure, and he has understood a lot of the arguments we have presented to him,” Ebrard said.
‘Comprehensive response’ to US tariffs coming on April 3
Sheinbaum said that the government will provide “a comprehensive response” to the United States’ tariffs on April 3.
Accountability in the Mexican Military: justice in the Nuevo Laredo case (Carlos Sánchez Colunga/Cuartoscuro)
Four Mexican soldiers were sentenced Monday to 40 years and nine months in prison after being convicted of five counts of homicide and one count of attempted homicide.
The soldiers sentenced were found guilty of indiscriminately firing upon a pickup truck in which seven civilians were riding in the early-morning hours of Feb. 26, 2023. The civilians were returning from a night out in the northern border city of Nuevo Laredo after celebrating the impending birth of one victim’s first child.
The extrajudicial killings by Mexico’s armed forces occurred in Nuevo Laredo in 2023. (Carlos Alberto Carbajal/Cuartoscuro)
Families of the victims celebrated the outcome of the trial but urged federal authorities to stand firm in the face of a likely appeal by the sentenced soldiers.
The defendants remain under guard at a military base in Mexico City. If they lose their appeal, they must serve their sentences in a civilian prison.
The presiding judge also ordered the commander of the XVI Motorized Cavalry Regiment — the soldiers’ home base — to issue a public apology to the families.
The defendants were among 21 soldiers on patrol that February morning. As part of their defense, they declared that they heard a loud bang and opened fire on what they claimed was a fleeing vehicle. Three of the defendants initially said they opened fire to support the first soldier who started shooting.
One of the two survivors testified that the soldiers fired at least two shots at his wounded friends after the pickup had stopped. He also denied that they were fleeing from the soldiers.
Mexico’s National Human Rights Commission (CNDH) investigated the predawn incident and called the shootings unjustified.
The CNDH report concluded that soldiers in four patrol vehicles had followed the pickup based on a “suspicion” and did not follow proper procedure in engaging the vehicle.
“Without giving verbal orders [to pull over], one soldier opened fire into the back of the private vehicle, and three other soldiers did the same to support the first one,” the report said.
Alejandro Encinas, Mexico’s top human rights official at the time of the case, directed the investigation. (Presidencia)
Only four of the 21 soldiers on patrol opened fire, the CNDH said, but they fired a total of 117 shots at the pickup.
The Defense Ministry (Sedena) initially said that the soldiers had heard gunshots, then approached a pickup truck with no license plates and no lights on in the darkness.
“Upon seeing the Army troops, they (the occupants) accelerated in a brusque and evasive way,” Sedena said in a pretrial statement.
In another version of the events, the soldiers said the truck sped away from them and crashed into a parked vehicle. It was only after the crash, the soldiers said, that they opened fire.
Crime scene reports found no evidence of weapons in the pickup after the shootings, and the CNDH report also stated that there was no evidence of any shots fired at the military patrol.
Nuevo Laredo has been the scene of human rights violations by the military in the past, according to The Associated Press.
The U.S. announcement, made Wednesday, will have a major economic effect on the auto industry in Mexico, in which all of the U.S.'s major automakers are heavily invested. (Shutterstock)
U.S. President Donald Trump announced Wednesday that he would impose a 25% tariff “on all cars that are not made in the United States,” but U.S. content in vehicles assembled in Mexico will be exempt from the duty, lowering the effective tariff on vehicles made in Mexico.
The tariff, which will also apply to certain automobile parts, is scheduled to take effect next Thursday April 3, but it appears that Mexican parts compliant under the United States-Mexico-Canada trade agreement (USMCA) will not immediately be taxed.
More than 80% of the vehicles exported from Mexico go to the United States, including those made by several U.S. automakers, such as General Motors and Ford. (Shutterstock)
Mexico exported some 2.9 million vehicles to the United States last year, and total automotive exports (Mexican-made vehicles and parts) generated revenue of more than US $181 billion.
More than 80% of the vehicles exported from Mexico go to the United States, meaning that the soon-to-be-imposed tariff will have a major impact on the Mexican auto industry, which includes U.S. automakers such as General Motors and Ford as well as other companies that ship vehicles across the border.
In a fact sheet published on Wednesday, the White House noted that President Trump had “signed a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to impose a 25% tariff on imports of automobiles and certain automobile parts, addressing a critical threat to U.S. national security.”
The White House said that “the 25% tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary.”
Trump described the tariff as “very modest” and noted that “if parts are made in America and a car isn’t, those parts are not going to be taxed or tariffed.”
“And we’ll have very strong policing as far as that’s concerned,” Trump said.
“For the most part, I think it’s going to lead cars to be made in one location. Right now, a car would be made here, sent to Canada, sent to Mexico, sent all over the place. It’s ridiculous,” he said.
Asked whether there were any conditions under which he would lift the auto tariffs, Trump said they were “permanent.”
President Trump announces 25% tariffs on all cars shipped into the United States that will go into effect April 2. pic.twitter.com/EUmRJ0Hkaa
The tariff as it will apply to vehicles made in Mexico
The White House said that “importers of automobiles under the United States-Mexico-Canada Agreement will be given the opportunity to certify their U.S. content, and systems will be implemented such that the 25% tariff will only apply to the value of their non-U.S. content.”
It also said that “USMCA-compliant automobile parts will remain tariff-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection (CBP), establishes a process to apply tariffs to their non-U.S. content.”
It was unclear how soon that process would be established.
Guillermo Rosales, president of the Mexican Association of Automotive Distributors (AMDA), said that a vehicle made in Mexico for export to the United States has, on average, 40% U.S. content. The effective tariff on a vehicle assembled in Mexico with 40% U.S. content would be 15%.
Given the effective tariff rate on Mexican-made cars will be lower than the full 25%, Mexico will have a “competitive advantage” over other countries and trading blocs, the Milenio newspaper reported.
It will be up to U.S. Secretary of Commerce Howard Lutnick, right, to establish a tariff assessment process for non-U.S. content that would normally be duty-free under the United States-Mexico-Canada Agreement (USMCA), but it is not yet clear when that will happen. (File photo/U.S. Department of Commerce)
Ebrard: ‘We have to seek preferential treatment for Mexico’
After highlighting that Mexico exports almost 3 million vehicles annually to the United States and supplies 40% of all parts used in auto plants in the U.S., Economy Minister Marcelo Ebrard told President Claudia Sheinbaum’s Thursday morning press conference that the Mexican government will seek to negotiate a better outcome for Mexico.
“If they’re going to change the system, if we’re going to go to a system of such high tariffs, what we have to do is seek preferential treatment for Mexico so that we have the conditions to protect jobs and the economic activity of Mexico,” he said.
For her part, Sheinbaum said that the government will provide “a comprehensive response on what Mexico will do in the face of this situation” on April 3.
The United States has already imposed 25% tariffs on Mexican steel and aluminium as well as goods from Mexico not covered by the USMCA. The U.S. also intends to impose reciprocal tariffs on goods from all its trading partners on April 2.
“We don’t want to give a response to each issue, but rather a comprehensive response,” Sheinbaum said.
She pledged to “protect Mexico, the jobs that are created here and Mexican companies.”
The end of the USMCA?
Rosales, the AMDA chief, highlighted that Trump’s new auto tariff violates the terms of the USMCA, which superseded NAFTA in 2020.
“Trump is changing from a rule of regional integration to a rule of national origin,” said Ildefonso Guajardo, Mexico’s former economy minister who headed Mexico’s USMCA negotiation team during Enrique Peña Nieto’s presidency. (Ildefonso Guajardo/X)
As things stand, vehicles made in Mexico can enter the United States tariff-free under the USMCA provided that they have North American content of at least 75%.
“Trump is changing from a rule of regional integration to a rule of national origin,” said Ildefonso Guajardo, a federal deputy who served as economy minister between 2012 and 2018 and thus headed up Mexico’s USMCA negotiation team during the presidency of Enrique Peña Nieto.
“… It’s a flagrant violation [of the USMCA],” Guajardo said.
For his part, the Latin America director of automotive consultancy Urban Science, Eric Ramírez, said that the new tariff appeared to represent “the end of the USMCA and three decades of integration” between the auto sectors of Mexico, the United States and and Canada.
Ramírez also said that it will be “very complex” to determine what is U.S. content and what is North American content as “there are systems that are completed between the three countries and which cross the border several times” during production.
The White House said that “legislation, pre-existing trade agreements like the USMCA, revisions to the U.S.-Korea Free Trade Agreement, and subsequent negotiations have not sufficiently mitigated the threat to national security posed by imports of automobiles and certain automobile parts.”
“These new tariffs aim to ensure the U.S. can sustain its domestic industrial base and meet national security needs,” it added.
The tariff ‘doesn’t make any economic sense’
Trump said Wednesday that his signing of an executive order to implement the new tariff marked “the beginning of Liberation Day in America.”
Tariffs will add about US $6,000 to the retail cost of autos sold in the U.S. but assembled in Mexico, like the Toyota Tacoma, which are manufactured in Apaseo el Grande, Guanajuato. (Toyota)
“We’re going to take back just some of the money that has been taken from us by people sitting behind this desk … and we’re going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they’ve been taking over the years,” he said.
Mexico had a record-high surplus of US $137.8 billion on automotive trade with the United States last year, according to the U.S. Department of Commerce.
Mexico is the top exporter of vehicles to the United States, ahead of South Korea, Japan, Canada and Germany. According to the White House, “in 2024, Americans bought approximately 16 million cars, SUVs, and light trucks, and 50% of these vehicles were imports.”
Citing data from Capital Economics, The New York Times reported that Mexico’s automotive manufacturing sector accounts for about 5% of the country’s economic activity and employs around 1 million people. Auto manufacturing in Mexico is largely concentrated in the north of the country and the Bajío, meaning that states in those regions face the biggest impact from the new tariff.
Citing Cox Automotive, the Times said that “tariffs would add $6,000 on average to the prices of cars made in Mexico or Canada, a category that includes vehicles like the Toyota Tacoma pickup, gasoline and electric versions of the Chevrolet Equinox, and several models of Ram pickups.”
Óscar Silva, who leads consulting firm Roland Berger’s industrial and automotive practices in Mexico, said that the new tariff “doesn’t make any economic sense” and will end up harming the economies of both Mexico and the United States.
Trump has suggested that the over US $100 billion that his tariffs will bring the U.S. in revenues will be shouldered by foreign countries, but the reality is that companies and individual business owners will be the ones paying. (Continental)
An economic windfall for the United States?
Trump said that the duty will generate hundreds of billions of dollars of revenue for the United States in a short period of time, although the aide who handed him the executive order said more specifically, “We expect that these tariffs will result in over $100 billion of new annual revenue.”
“Anywhere from $600 billion to $1 trillion will be taken in over the relatively short-term period, meaning a year from now,” Trump said. “But starting right away — starting right away — I think we’ll go from $600 [billion] to a trillion within two years.”
So-called “importers of record” will pay the tariff to the United States government.
The New York Times reported that “importers of record [in the United States] can be of any nationality … but Richard Mojica, a customs lawyer at Miller & Chevalier, said that importers of record are typically owners or purchasers of goods, and are ‘usually U.S. companies.'”
“Many U.S. companies have expressed frustration with Mr. Trump’s frequent assertions that foreign countries pay for tariffs, saying they are paying those taxes themselves,” the Times added.
Trump also said Wednesday that the new tariff will encourage automakers and their suppliers to open new plants in the United States.
“A lot of foreign car companies, a lot of companies are going to be in great shape because they’ve already built their plant. But their plants are underutilized, so they’ll be able to expand them inexpensively and quickly. But others will come into our country and build and they’re already looking for sites,” he said.
Shakira is on track to become the first solo artist to sell out seven consecutive shows in the CDMX venue formerly known as Foro Sol. (OCESA/Cuartoscuro)
Global pop superstar Shakira is making history on the Mexico portion of her “Las Mujeres Ya No Lloran” world tour, with massive crowds in three cities and a run of sold-out Mexico City concerts that’s on the brink of a record.
The 48-year-old Colombian known as the “Queen of Latin Music” has packed the house for her first four dates at Estadio GNP Seguros. With three more shows there Friday, Saturday and Sunday, it’s all but guaranteed she will become the first solo artist to fill the Mexico City venue for seven consecutive performances.
Shakira strikes a pose at the Estadio GNP Seguros after the first show of her current run in Mexico City. (Shakira/Facebook)
In all, she is expected to draw 455,000 to the stadium formerly known as Foro Sol. And that’s on top of the 100,000 she drew for two sold-out shows in Monterrey’s BBVA Stadium March 12-13, and the 90,000 for two sold-out shows at Akron Stadium in metro Guadalajara March 16-17.
When Shakira, a singer and songwriter who has achieved Madonna-like success in both the Spanish and English markets, first announced her 2025 Mexico tour dates last October, only one show was scheduled for each of those three cities. But tickets sold out quickly and more shows were added.
Now, even more have been added.
It was announced late Wednesday that Shakira will return to Mexico near the end of the summer to perform Aug. 29 in Mexico City, Sept. 2 in Querétaro, Sept. 6 in Zapopan (adjacent to Guadalajara) and Sept. 12 in Puebla — all at big stadiums.
Presale tickets for Banamex cardholders will begin Friday, with general ticket sales the next day. And with dates left open between the new concerts, there’s a chance even more shows could be added.
Even without any additional shows, Shakira will reach the milestone of eight concerts on one tour at Estadio GNP Seguros — an achievement that surpasses all other international icons, including Paul McCartney, Metallica, Coldplay and even Taylor Swift.
The winner of four Grammys and 15 Latin Grammys, Shakira is known for many hits, but her all-time most popular song is “Hips Don’t Lie,” a duet in which hip-hop pioneer Wyclef Jean repeatedly sings “Shakira, Shakira.”
SHAKIRA || BZRP Music Sessions #53
Through four shows in Mexico City, one of the highlights was Shakira sharing the stage with Grupo Frontera, winner of two Latin Grammys last year. She and the Texas-formed band, which is deeply rooted in Mexican genres, performed “(Entre Paréntesis),” a song from her 2024 album.
“I really wanted to give you all a surprise,” Shakira told the media afterward. “Every day, I strive to give you something more because the Mexican audience has been so loyal, so loving, and has lifted me up every time I needed it. I wanted to surprise you with something that would fill your hearts.”
“(Entre Paréntesis)” joined “Ciega, Sordomuda” and “El Jefe” as songs Shakira has added to her recent concerts as a heartfelt tribute to Mexico, where her concerts have featured multiple outfit changes, scintillating dance numbers, and diverse setlists including rock, ballads and mariachi music.
The singer expressed her gratitude to the Mexican fans, stating that their support has been a source of strength and inspiration throughout her career.
Just about the only ebb was a torrential rain on Tuesday night that left 60,000 fans scrambling for cover and nearly derailed the party. But when Shakira finally took the stage at 10:20 p.m., the atmosphere was electric and concertgoers, braving the downpour, danced and sang along.
Later, Grupo Frontera hit the stage as Shakira donned a sombrero and danced to the norteño beat.
As for the economic impact, Shakira’s concerts in the nation’s capital are projected by the Mexico City chamber of commerce to generate 3.247 billion pesos (US $159 million), as cited in the online newspaper Infobae.
That figure — which includes ticket sales, revenue from hotel bookings, local commerce, and food and beverage consumption — surpasses the impact from Taylor Swift’s 2023 Eras Tour concerts in Mexico City, although that was only four concerts.
