Factories across Mexico, but particularly northern Mexico are likely to feel the impact of U.S. tariffs, which went into effect Tuesday. (Aberu.go/Shutterstock)
Ten of Mexico’s 32 states could be highly vulnerable to U.S. tariffs on Mexican products, the U.S. credit rating agency S&P Global Ratings forecast on Thursday.
Several Mexican states rely on export-oriented manufacturing, particularly in the north and Bajío (central) regions. In total, around 80% of Mexico’s exports are destined for the U.S., roughly 40% of them in auto manufacturing.
A Toyota automotive plant located in the northern city of Tijuana. (Baja California) (Omar Martínez/Cuartoscuro)
On Feb. 1, the U.S. government announced a 25% tariff on imports from Mexico and Canada. The White House later delayed the tariffs to March 4.
Mexico’s President Claudia Sheinbaum announced on Tuesday that her government will respond with its own “tariff and nontariff measures.”
S&P’s forecast shows that the Mexican states of Baja California, Chihuahua, Sonora, Coahuila, Nuevo León, Tamaulipas, San Luis Potosí, Guanajuato, Querétaro and Aguascalientes will likely feel the biggest impact of the tariffs, as over 20% of their GDP comes from industries moving goods between Mexico and the United States and selling products to the U.S.
The states of Jalisco, Hidalgo, México state, Morelos, Puebla, Oaxaca and Tlaxcala face moderate exposure to the tariff threat, with between 10% and 20% of their GDP coming from vulnerable industries.
If the tariffs remain in place for months or quarters, rather than weeks, Mexico’s economy could be hit hard, according to S&P.
The sectors expected to be most exposed to the shock are transportation manufacturing (including machines and equipment, motor vehicles and semitrailers), electrical equipment manufacturing and basic metals (including steel and aluminum).
Steel manufacturing is another Mexican industry expected to be hard hit by U.S. tariffs. (Alto Hornos de Mexico)
S&P estimates that a drop in demand spurred by tariffs could decrease production in certain sectors by 8%–15%.
Some states, such as México state and Hidalgo, have more diverse economies, making them less vulnerable to tariffs. However, market uncertainty could lead to reduced private-sector investment in Mexico, hindering economic growth, said S&P.
Banco Base’s assessment
The Mexican financial institution Banco Base also predicted on Feb. 2 that the tariffs’ biggest impact would be on northern Mexico, naming states whose exports contribute a high proportion of their GDP. Banco Base’s list of those likely to be most affected included Chihuahua, Coahuila, Baja California, Tamaulipas, Sonora and Nuevo León.
“If tariffs come into effect, this will mean a collapse, first for Mexican exports. This implies a lower supply of dollars arriving in Mexico and therefore increases in the exchange rate,” said Banco Base’s Director of Economic Analysis Gabriela Siller.
With 25% tariffs, explained Siller, “… foreign companies would no longer have incentives to reinvest their profits in Mexico and install new plants.”
Meanwhile, the Mexican Institute for Competitiveness (IMCO) said in a recent report that it expects tariffs to hit highly integrated industries in the region harder, such as automotive, aerospace, electronics and agriculture.
IMCO expects any trade barrier to increase the cost of production as well as reduce competitiveness against other markets.
Larry Rubin of the American Society of Mexico. (Moises Pablo Nava/Cuartoscuro)
The arrival in Mexico of the new United States ambassador will help the Mexican government “understand what the priorities are” for the Trump administration, according to Larry Rubin, president of the American Society of Mexico (AmSoc).
Mexico News Daily recently spoke to Rubin, a dual Mexican and United States citizen who is a representative of the U.S. Republican Party in Mexico.
He said he was “very optimistic” about the arrival of Ronald D. Johnson, a former ambassador to El Salvador who United States President Donald Trump nominated as his pick for ambassador to Mexico. Johnson is currently awaiting confirmation of his appointment by the U.S. Senate.
“We really believe that his work in Mexico will be crucial on many fronts,” Rubin told MND.
Although Trump has made it clear he wants action from Mexico to stem the flow of drugs and migrants to the United States, the AmSoc president believes that Johnson will provide even greater clarity to the Sheinbaum administration about the priorities of the U.S. government.
On immigration control and the fight against transnational drug trafficking, “definitely Mexico and the U.S. need to work together,” Rubin said.
Johnson could be a crucial intermediary between Trump and the Sheinbaum administration, conveying to Mexican officials what needs to be done to appease the U.S. president and avoid — or have lifted — punitive measures such as the imposition of tariffs on Mexican exports, for example.
“The Trump administration has been very clear that they don’t expect anything but results, and so the time when Mexico could get away with beautiful press releases, and forums and discussions and inviting ministers to come down and talk about it or go up to D.C. and talk about it is long gone,” Rubin said in an interview before the extradition of 29 Mexican cartel figures to the United States.
“Now it’s about action … and that’s what we get with this [U.S] administration,” he said.
Los aranceles no son buenos para nadie. Tampoco lo es el crimen organizado. Trabajemos juntos México 🇲🇽, Estados Unidos 🇺🇸 y Canadá 🇨🇦 para erradicar este cáncer que nos ha invadido a las 3 naciones
Rubin stressed that action against narcotics and illegal immigration is also “good for Mexico,” and said he had spoken about that to “different stakeholders” in the Mexican government.
It’s not about doing “a favor” for the U.S., but about “what’s in it for Mexico,” he said, referring to benefits such as an improved domestic security situation.
“Working together, the U.S. and Mexico, there really is an opportunity for both countries to benefit,” Rubin said.
“If you want to get rid of those tentacles you have to go to the source and the source is these Mexican drug lords in Mexico,” said Rubin, who compared high-ranking cartel operatives in the U.S. to “small-time managers.”
Rubin: Stopping flow of weapons to Mexico not a priority for US
Asked whether he believed the United States would take meaningful action to stem the flow of weapons to Mexico, Rubin responded that he didn’t believe it was “a priority for the U.S. government.”
“And I don’t see it becoming a priority,” he added.
Over two million illegal firearms are estimated to have entered Mexico since 2013. (Adolfo Vladimir/Cuartoscuro)
The United States is the primary source of weapons for cartels, but Rubin said that Mexican criminal organizations also obtain weapons from other parts of the world and could rely on those connections if the illicit supply from the U.S. dries up.
“They don’t need the U.S. to get their weapons,” he said.
Rubin said that “the way Mexico can control illegal weapons from coming in is really securing their borders.”
“At the end of the day who’s responsible for anything coming into Mexico is not the U.S., it’s Mexico,” he said, adding that the U.S. is also “responsible for closing down its borders” to stop the entry of drugs and migrants.
The AmSoc president advocated greater engagement with Texas on the arms trafficking issue, noting that approximately 70% of the Mexico-U.S. border runs through the Lone Star state.
“I think these issues can be discussed … state to country, more than at a federal level,” he said, adding that he believed Texas Governor Greg Abbott was “open” to such talks.
USMCA is ‘a very valuable instrument’
Rubin said that the United States-Mexico-Canada Agreement, the free trade pact that superseded NAFTA in 2020, is “a very valuable instrument, not only for Mexico but also for the U.S. and Canada.”
The agreement has created opportunities for small companies as well as large corporations “to look beyond their local markets,” he said ahead of the 2026 review of the pact.
The USMCA has brought Mexico and the United States together as trade partners like never before. (Omar Martínez/Cuartoscuro)
As an extension of the economic integration in North America, Rubin said that the United States could seek to alleviate shortages in certain sectors, such as nursing and trucking, by hiring Mexican workers.
There are “tons of opportunities to help the U.S. economy by bringing in legal workers” who can be “vetted” by authorities before entry, he said, adding that expanding legal pathways for migration is something that the Trump administration will likely look at.
Rubin sees increased US immigration to Mexico as a positive
“We’re excited to see these growing numbers because we do believe that makes our societies even more integrated,” Rubin said, referring to the increased presence of Americans in Mexico.
He said that some 2 million U.S. citizens currently live in Mexico.
Due to the large number of Mexican-Americans in the U.S., and the growing number of U.S. citizens living in Mexico, he predicted the emergence on both sides of the border of more leaders from those communities in politics, business and other fields.
Mexico News Daily asked the AmSoc president whether he had detected any increase in anti-American sentiment due to current tensions in the Mexico-U.S. relationship, including those related to Trump’s mass deportation plan.
“Fortunately I have not picked up anything yet. Of course, we have to be vigilant because the tide could turn,” he said.
“But part of what we try to do at the American society is promote the fact that our two countries are stronger together.”
By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)
National Defense Minister Ricardo Trevilla Trejo addressing members of Mexico's National Guard. (@OHarfuch/X)
Mexican authorities confiscated 18,690 kilograms (18.7 tonnes) of illegal drugs — including nearly 56 kg of fentanyl — and arrested more than 1,000 suspected drug traffickers at its shared border with the United States since launching Operación Frontera Norte (Operation Northern Border) on Feb. 5.
Still, this was not enough to prevent U.S. President Donald Trump from enacting 25% tariffs on Mexican goods due to insufficient actions by the Mexican government to stop the flow of fentanyl to the U.S.
Sheinbaum and members of her security cabinet quickly launched an aggressive strategy to reduce illegal drug trafficking from Mexico across the U.S. border called Operación Frontera Norte (Operation Northern Border, in English) on Feb. 5. (@OHarfuch/X)
Two days later, on Feb. 5, Sheinbaum and members of her security cabinet quickly launched a new, more aggressive strategy that featured Operación Frontera Norte (Operation Northern Border, in English). The president also took the unusual step of transferring 29 top drug lords to face trial in the U.S.
Mexico also confiscated more than 1,000 illegal weapons and seized 892 vehicles in the first 26 days of the operation.
Despite this, U.S. officials insist more could have been done.
U.S. Commerce Secretary Howard Lutnick conceded during an interview on CNBC Tuesday morning that Mexico “has done a nice job on the border, but they haven’t stopped the flow of fentanyl.”
U.S. Customs and Border Protection (CBP) data indicates that 449 kg of fentanyl were confiscated at the U.S.-Mexico border in January, eight times the amount confiscated by Operación Frontera Norte in February.
CBP data also shows that a monthly average of 753 kg of illegal opiates have been confiscated at the border since October 2023.
Lutnick tried to spin the U.S. policy as “a drug war, not a trade war.”
Since the U.S. had not seen a “statistically relevant reduction” of deaths related to fentanyl, Lutnick said, the tariffs were applied. He did add that if Mexico can prove to Trump that they can stop the flow of fentanyl, “then of course the president can remove these tariffs.”
At 1 p.m. Mexico City time on Tuesday, the peso had strengthened from its earlier position of 21 and was trading at 20.75 to the dollar. (Shutterstock)
The peso weakened as much as 1.5% during Tuesday morning trading to reach 21.002 to the dollar, according to Reuters. That was the weakest position for Mexico’s currency since early February when the peso declined to nearly 21.30 to the dollar ahead of an earlier planned commencement date for the U.S. tariffs.
The Mexican Peso has finally begun to react to US tariff news, but price action is still laughably tiny. Peso is down 2% versus the Dollar, which is nowhere near the 25% tariff. Markets implicitly assume Mexico will cave on any and all US demands, so tariffs get lifted quickly… pic.twitter.com/2d4ybB2rFv
At 1 p.m. Mexico City time, the peso had strengthened from its earlier position and was trading at 20.75 to the dollar — still weaker than its closing position on Monday.
The depreciation of the peso on Thursday morning extended losses for the currency to a fourth consecutive trading session.
The almost nine-year high of 16.30 to the dollar that the peso reached last April now seems like a distant memory, given the ample turbulence the Mexican currency experienced after Mexico’s 2024 elections, Congress’ approval of a controversial judicial reform, Donald Trump’s victory in the U.S. presidential election and his subsequent — and many — tariff threats directed toward the United States’ southern neighbor.
The peso has declined more than 20% against the greenback in the last 11 months.
Mexico sends just over 80% of its exports to the United States, meaning that the 25% tariffs will have a major impact on the Mexican economy and could trigger a recession, especially if they remain in place for an extended period of time. President Claudia Sheinbaum said Tuesday that she will announce retaliatory “tariff and non-tariff measures” on Sunday.
According to Reuters, Lee Hardman, a senior currency economist with the MUFG financial group, “said the peso’s initial moves had been relatively modest, considering the scale of the U.S. duties that both Mexico and Canada are now saddled with.”
“The price action suggests that market participants remain hopeful that the tariff hikes won’t remain in place for long, helping to limit trade and economic disruption,” Hardman said.
“We continue to believe that both currencies [the peso and the Canadian dollar] could fall by around 5-10% in response to more persistent tariff hikes,” he said.
La amenaza de aranceles de Estados Unidos no ha terminado. La siguiente semana, el miércoles 12, entran en vigor los aranceles del 25% al acero y aluminio, que serán adicionales a los aranceles generales ya implementados.
— Gabriela Siller Pagaza (@GabySillerP) March 4, 2025
Gabriela Siller noted on Tuesday that an additional 25% U.S. tariff on steel and aluminum exports is still scheduled to take effect next Wednesday.
Gabriela Siller, director of economic analysis at Banco Base, said on X that “if the tariffs continue” the peso will depreciate further “because the flow of foreign currencies to Mexico will be affected, short and long-term economic growth will be compromised and the risk of” Mexico losing its investment grade credit rating “will increase.”
In another post, she said that “the atmosphere feels like the pandemic” because “nobody knows what’s going to happen and how long [the tariffs] will last.”
The duties were imposed on Mexican and Canadian goods due to what the White House said was a failure by Mexico and Canada to take adequate action against “the influx of lethal drugs” to the U.S.
Clark Geranen, chief market strategist at CalBay Investments, said in a note on Tuesday that “while Tuesday’s tariffs are a go, it remains very unclear on just how long these tariffs will remain.”
“We tend to believe these are more of a negotiation tactic and not the start of a long and drawn out reciprocal trade war. Still, in these situations, investors sell first and ask questions later, as seen during Monday’s selloff,” he said.
Mexican Stock Exchange declines
Reuters reported Tuesday morning that stocks had fallen in Mexico for a fourth consecutive day. The benchmark index of the Mexican Stock Exchange “slid to its lowest in five weeks, with local equities still up over 3% year to date,” the news agency said.
Stock markets in the United States also fell after Trump’s announcement on Monday that the tariffs on Mexico and Canada were going ahead.
“Black day for the capital markets,” Siller said on X on Tuesday morning above a chart showing that the Dow Jones, the S&P 500 and other stock indexes were in negative territory.
More than 30,000 people from 22 municipalities who commute daily between Mexico City and Querétaro will benefit immediately from the new train line, with a total population of 5.6 million also expected to benefit. (Presidencia/Cuartoscuro)
Four months after plans were presented to build a Mexico City-Querétaro passenger train line, the project appears to be heading for completion ahead of schedule, but at nearly double the original cost estimate.
Andrés Lajous, director of Mexico’s Rail Transport Regulatory Agency (ARTF), on Monday confirmed reports published last week that construction of the line would cost 144 billion pesos (US $7 billion), considerably more than the 75 billion pesos ($3.7 billion) estimated when President Claudia Sheinbaum launched the project on Oct. 13, 2024.
Andrés Lajous, director of Mexico’s Rail Transport Regulatory Agency (ARTF), confirmed on Monday that construction of the line would cost double what it was estimated to cost. (SICT/X)
During Sheinbaum’s Monday press conference, Lajous and the Infrastructure, Communications and Transportation Ministry (SICT) offered a status report of the preliminary studies and ongoing technical reviews. An update on a related project — the Querétaro-to-Irapuato trunk line — was also provided.
Construction is set to get underway in July, Lajous said, with a targeted completion date of December 2027. The scheduled launch of service in early 2028 is a full year ahead of the government’s pre-investment stage estimate, which foresaw operational testing in late 2028 and service launch in 1Q 2029.
Millions will benefit from train connecting CDMX and QRO
The Sheinbaum administration has said the Mexico City-Querétaro train — with stops in Tula, Hidalgo, and San Juan del Río, Querétaro — will enhance urban and interurban mobility. The station in Tula was not included in the original plan.
Lajous said more than 30,000 people from 22 municipalities who commute daily between Mexico City and Querétaro will benefit immediately from the new train line, with a total population of 5.6 million also expected to benefit, directly or indirectly.
Two dedicated passenger lines utilizing the existing right of way will extend for 225 kilometers (140 miles) with trains able to reach speeds of 200 km/h (124 mph).
“The trains will provide rapid and efficient service with [end-to-end] travel time of one hour and 50 minutes,” Lajous said.
The Mexican military and its Felipe Ángeles Engineer Corps will build, repair or lengthen 49 bridges, six tunnels, 14 viaducts and two bypasses, with orders to minimize disruptions to existing infrastructure. Two railway interchanges will also be designed, according to a SICT document cited by Forbes México.
Another 3 million people will benefit from the proposed 110-kilometer Querétaro-to-Irapuato line which will link Querétaro to several major cities in the state of Guanajuato. The preliminary estimate for the cost of this second line is 73 billion pesos ($3.5 billion).
Additionally, the SICT said the two projects will create 99,000 permanent jobs and indirectly contribute to the creation of a further 170,000 positions.
The SICT also shared the project’s environmental advantages.
“Although the [train] will not be completely electric, its hybrid technology [using diesel-electric fuel pumps] will allow greater fuel efficiency and a significant reduction in greenhouse gas emissions,” the SICT document said, especially as the convenience of the train will serve to make it an alternative to vehicular traffic.
Additionally, the train stations will connect directly to public transportation services in each city.
Juan Gabriel was the man behind many of Mexico's favorite songs. Off the stage, he was also a tireless campaigner for equal rights. (Julio Enriquez/Flickr)
Few singer-songwriters in Mexico have left a legacy as profound as Juan Gabriel, affectionately known as “Juanga,” or “El Divo de Juárez.” Over the course of his long and storied career, the singer penned a string of enormous hits, moved hearts across the country and fought for civil rights, but who was the man whose music brought a nation to tears?
Humble beginnings
A statue to Juan Gabriel in his hometown if Parácuaro, Michoacán. (Estado de Michoacán).
Alberto Aguilera Valadés was born in January 1950 in Parácuaro, Michoacán. As the youngest of six siblings in a low-income household, survival was a daily struggle. His father worked on their small plot of land while his mother did domestic work to provide for the family. His father suffered a severe mental breakdown when he accidentally set fire to a neighboring plot of land. He was institutionalized in a psychiatric hospital and vanished from their lives forever.
Forced to leave their home, the family relocated to Ciudad Juárez. The transition was far from easy, everyone had to work to survive, leaving little time for nurturing young Alberto. He often accompanied his mother to work, but his mischievous nature frequently led to trouble.
This ultimately drove his mother to place him in an orphanage. At just five years old, he was completely abandoned. Alberto found solace in a staff member at the institute named Juan Contreras, who taught him how to play musical instruments and became a father figure. At 13, Alberto escaped the institute and moved in with Juan.
With his newfound independence, he pursued a music career, but as the years passed, his longing drew him back to his family who had moved back to Michoacán. He channeled his emotions into songwriting, penning “La muerte del palomo,” a deeply melancholic piece reflecting on his father’s absence. This song marked the beginning of a notebook filled with compositions that would later propel him to fame.
The difficult path to success
Juan Gabriel live in concert. (Julio Enriquez/Wikimedia Commons)
Alberto moved to Ciudad Juárez and auditioned for the popular TV show “Noches Rancheras.” However, his big break came when he sneaked into El Noa Noa, a popular nightclub. His voice impressed the owner, who hired him as a regular performer. A few years later, Alberto moved to Mexico City to further pursue his dreams. One night, while singing at a bar, an agent noticed his talent and offered him a job at RCA as a backup singer.
His journey took a devastating turn when he was wrongly accused and sentenced for theft. During his 18 months at the Lecumberri prison, he wrote some of his most famous songs. The prison director, recognizing his talent, had him perform for the inmates and later helped secure his release. He returned to the stage with renewed determination and his new name, Juan Gabriel; a tribute to his father, Gabriel, and his beloved mentor, Juan.
The rise of a legend
In 1973 he released his first album, “El Alma Joven.” His dramatic performances quickly won over audiences but fame came with more hurdles. In conservative Mexico, Juan Gabriel’s flamboyant style and mannerisms sparked controversy. Reporters often questioned him about his sexual orientation, which he famously dismissed by saying: “What can be seen, doesn’t need to be asked.”
Juan Gabriel - Amor Eterno (En Vivo [Desde el Instituto Nacional de Bellas Artes])
Despite the controversy, Juan Gabriel’s star continued to rise. His songs resonated with people of all backgrounds. A few years after his debut, he earned a Golden Album for selling over a million copies. He then reunited with his mother and they finally spent meaningful time together. However, she passed away only three years later, a loss that deeply affected him and inspired one of his most iconic songs, “Amor eterno.”
Breaking barriers
Juan Gabriel long dreamed of performing at Palacio de Bellas Artes. However, breaking into this revered institution was no easy feat. Many critics and cultural elites dismissed Juan Gabriel’s music as unsophisticated and meant for the masses, arguing that allowing his performance would diminish the institution’s prestige.
Beyond concerns about tainting the fine arts, there was an unspoken but undeniable factor driving the opposition: homophobia. Juan Gabriel’s unapologetic style clashed with the rigid conservatism of the time. Despite the resistance, Juan Gabriel refused to be confined by prejudice, determined to prove that popular music and the people who loved it deserved a place on the country’s grandest stage.
The 2013 Bellas Artes concert was an enormous moment for Mexico, with giant screens being set up in the Zocalo to allow thousands without tickets to join the magic. (Andrea Murcia/Cuartoscuro)
Juan Gabriel accomplished his dream of performing at the Palacio de Bellas Artes in May 1990 alongside the National Symphony Orchestra. His powerful voice and magnetic presence in a series of concerts at the venue were a resounding and sold-out success.
In August 2013, Juan Gabriel returned to Palacio de Bellas Artes to commemorate 40 years of his legendary career. This special concert was recorded using state of the art technology and the resulting album, “Mis 40 en Bellas Artes,” sold over 5 million copies, further cementing his superstar status.
The end of an era
On August 27, 2016 Juan Gabriel gave a dazzling performance at the Los Angeles Forum as part of a tour through the United States. As the concert came to a close, a powerful message appeared on the screens: “Congratulations to all the people who are proud to be who they are.”
The next morning, he passed away from a heart attack in Santa Monica, California. The news stunned millions of fans. His funeral was a nationwide moment of collective mourning. Over 700,000 people gathered around Palacio de Bellas Artes, where his ashes were placed for a fitting tribute. The ceremony was broadcast live on national television, allowing millions more to mourn from home. After the ceremony, his ashes were taken to Ciudad Juárez, where thousands gathered to welcome him home and lay him to rest.
Throughout his long career, Juan Gabriel authored hundreds of songs, amassed countless awards, sold millions of albums, and performed worldwide. Yet, his greatest achievement was becoming immortal. As he used to say: “As long as someone sings my songs, Juan Gabriel is alive.”
Sandra Gancz Kahan is a Mexican writer and translator based in San Miguel de Allende who specializes in mental health and humanitarian aid. She believes in the power of language to foster compassion and understanding across cultures. She can be reached at sandragancz@gmail.com
At her Tuesday morning presser, Mexico's President Claudia Sheinbaum said she will announce retaliatory measures this Sunday in Mexico City's central square, the Zócalo. (Gustavo Alberto/Cuartoscuro)
President Claudia Sheinbaum announced Tuesday that Mexico will respond to the United States’ 25% tariffs on Mexican exports with its own “tariff and non-tariff measures.”
Speaking at her morning press conference some eight hours after the United States tariffs on Mexican and Canadian exports took effect, Sheinbaum said that the “unilateral decision” of the U.S. government “affects national and foreign companies that operate in our country and affects our people.”
“Nobody wins with this decision. On the contrary, it affects the people we represent,” Sheinbaum said about Trump’s decision to impose 25% tariffs on Mexican exports. (Gustavo Alberto/Cuartoscuro)
“Therefore, we have decided to respond with tariff and non-tariff measures,” she said, adding that she will announce the measures this Sunday in Mexico City’s central square, the Zócalo.
Sheinbaum stressed that Mexico doesn’t want to enter into “an economic or trade confrontation” with the U.S. saying that such a situation is the “opposite” of what the North American region “should be doing.”
The countries of North America, she said, should be “integrating our economies more to strengthen our region in the face of the economic and trade progress of other regions.”
Sheinbaum said it was “inconceivable that no thought is given” to the harm the tariffs on Mexican exports will cause to United citizens and companies.
She also said that the implementation of tariffs will halt job creation in both Mexico and the United States.
“Nobody wins with this decision. On the contrary, it affects the people we represent,” Sheinbaum said.
The president said that her government “will continue to seek dialogue” with its United States counterpart “in order to find an alternative” to the tariffs imposed by U.S. President Donald Trump due to what the White House said was a failure by Mexico and Canada to take adequate action against “the influx of lethal drugs” to the U.S.
Sheinbaum called on “the people of Mexico” to “confront this challenge together and maintain unity.”
“I reiterate it’s time for the defense of Mexico and its sovereignty,” she said.
By not announcing Mexico’s retaliatory measures until Sunday, Sheinbaum buys herself time to perhaps reach a deal with Trump this week. (Gage Skidmore via Flickr/Cuartoscuro)
By not announcing Mexico’s retaliatory measures until Sunday, Sheinbaum buys herself time to perhaps reach a deal with Trump this week. In early February, she was also able to stave off the 25% tariffs for one month after committing to deploy 10,000 National Guard troops to Mexico’s northern border as part of an agreement with the U.S. president.
The U.S. government has also imposed an additional 10% tariff on Chinese imports, prompting Beijing to retaliate with tariffs of up to 15% on a wide array of U.S. farm exports, according to the Associated Press.
AP reported that “Canadian Prime Minister Justin Trudeau said his country would slap tariffs on more than [US] $100 billion of American goods over the course of 21 days.”
Tariffs imposed despite Mexico’s actions against cartels and decline in illegal migration to US
The U.S. tariffs on Mexican and Canadian exports took effect at 12:01 a.m. Tuesday, just over six weeks after Trump took office for his second term.
Mexican authorities have also arrested more than 13,000 people for high-impact crimes such as murder, kidnapping and extortion, seized more than 6,500 firearms and dismantled hundreds of clandestine meth labs over the past five months.
Despite all these actions, and more, the United States still implemented 25% tariffs on its southern neighbor, in violation of the USMCA free trade pact.
The duties were imposed on Mexico and Canada despite United States Commerce Secretary Howard Lutnick’s declaration on Sunday that both U.S. neighbors “have done a reasonable job on the border” and “we’ve had the lowest crossings ever [of migrants] under Donald Trump because of his ability to negotiate with Canada and Mexico.”
On Tuesday, Lutnick told CNBC that if Mexico and Canada “can stop the flow of fentanyl and they can prove to the president they can stop the flow of fentanyl then the president of course can remove these tariffs.”
“But you’ve seen it, it has not been a statistically relevant reduction of [fentanyl-related] deaths in America, it’s just black and white. And we told them it was outcome based,” he said.
“I understand that Canada says it’s only a small amount of fentanyl [coming into the U.S. via its northern border], it can only kill 9 million Americans, it’s not that much, whereas the flow of fentanyl from Mexico could kill everyone in America. I mean, you got to be kidding me! It’s got to stop and it’s got to stop really right away,” Lutnick said.
“… Hopefully Mexico will understand that this is not a trade war, this is a drug war. Hopefully they understand that, we keep saying it again and again and again,” he said.
On Monday, he said that what companies will “have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs.”
AP reported that the tariffs on Mexico and Canada “may be short-lived if the U.S. economy suffers.”
For months, the Mexican government has focused on pointing out that United States tariffs on Mexican exports would have a detrimental effect on the U.S. economy. Economy Minister Marcelo Ebrard has said that 25% tariffs would cause the loss of 400,000 jobs in the United States and increase prices for U.S. consumers.
US once again accuses Mexican government of affording ‘safe havens’ to cartels
In a “fact sheet” issued on Monday, the White House said that Trump was proceeding with the tariffs on Mexican and Canadian exports “under the International Emergency Economic Powers Act to combat the extraordinary threat to U.S. national security, including our public health posed by unchecked drug trafficking.”
“While President Trump gave both Canada and Mexico ample opportunity to curb the dangerous cartel activity and influx of lethal drugs flowing into our country, they have failed to adequately address the situation,” the White House said.
The White House asserted that “Mexican drug trafficking organizations, the world’s leading fentanyl traffickers, operate unhindered due to an intolerable relationship with the government of Mexico.”
“The government of Mexico has afforded safe havens for the cartels to engage in the manufacturing and transportation of dangerous narcotics, which collectively have led to the overdose deaths of hundreds of thousands of American victims,” it added.
On Monday, the White House also said that “cartel violence, including armed drones and roadside IEDs [improvised explosive devices], are coming in closer and closer proximity to the U.S.-Mexico border as cartels are more actively targeting one another as well as Mexican military and law enforcement personnel.”
Cartels’ “alliance with the Mexican government endangers the national security of the United States, and we must eradicate the influence of these dangerous cartels,” it added.
The White House also said that “when voters overwhelmingly elected Donald J. Trump as President, they gave him a mandate to seal the border.”
Hey, we have Amazon down here too, you know. Ours is just... slightly different. (Christian Wiediger/Unsplash)
It wasn’t until I was in college that I realized there were people who hated Walmart for political reasons.
My own personal reasons for hating Walmart were simply related to boredom. The “regular” Walmart was bad enough, and my mom loved it; it was her favorite store. When the SuperWalmart opened, it was game over. I’ll admit though, that by then I liked shopping enough to go with her willingly, and I have some nice memories of being out and about with my mom at Walmart. It eventually became fun.
This is what hell looks like. (Caique Morais/Unsplash)
Once in college with kids who had grown up in upper-middle class households where there was no anxiety during the time between parents’ paychecks, I realized it wasn’t cool for other reasons. I learned about how it pushed smaller, independent stores out of business. I learned about how they depended on sweatshop labor to supply their cheap products. And I learned how they treated their workers, letting the government supplement through food stamps what they as employers wouldn’t pay.
And while no one ever said this, I suspect Walmart was extra easy to hate because it triggered a feeling of superiority in those whose paychecks made it unnecessary to shop for bargain prices. They were better than “Walmart people,” and they were proud of it.
Now, those arguments almost seem quaint. Because really, Walmart was simply the writing on the wall: a harbinger of the global marketplace to come. The country-wide dominance of SuperWalmarts brought about the period the US now enjoys: virtually unlimited products for pretty good prices. At least they were pretty good prices for a while. Is this what people mean by “making America great again”?
The next iteration of Walmart, of course, has been Amazon. And on Amazon, you can get pretty much anything. Asian companies like Alibaba, Temu, and Shein aren’t far behind. I guess we’ll see what new tariff rules have to say about that!
It doesn’t matter where you are, Amazon is almost certainly there with you. (Marques Thomas/Unsplash)
I used to love Amazon. I’d plan my purchases to be delivered to Texas, then bring them back to Mexico. What convenience! And those reviews? Man, those were great — a revolution in marketing, honestly.
Now, I’m more ambivalent about the company. But that doesn’t mean I don’t still use it sometimes. Or more than I should.
Amazon’s Mexico site continues to grow. And while there are certain things I can’t get on it — why don’t they ever have that Revlon Kiss balm? — it often has the best prices for things that aren’t quite as easy or cheap to find “on the ground,” like the air purifier I bought last week. Like Walmart, I don’t feel great about Amazon purchases. But like my mom, I need a good deal.
If you also need to find something unavailable locally, it could be a good option.
These boxes could be yours — but bear the following in mind. (Unsplash)
Here are some things to know about Mexico’s version:
Some things are shipped from the U.S. Many things, actually, are shipped from the U.S. — as opposed to being available already in one of the Mexico warehouses. Thankfully, Amazon will include any importation fees for you to see before completing your purchase. This is a big deal to me because most other things I’ve had shipped have been held hostage by customs. I think they’ve got me pegged as someone who usually goes ahead and pays the exorbitant customs fee because they never miss a chance. But there are never any surprise fees to receive my package from Amazon.
Just like Mexican Netflix, Mexican Amazon selections are different here. Using a VPN won’t fix it unless you have a U.S. account, and even then, it will still likely detect that you’re on a foreign internet connection. I’ve found the Prime movie and show selections to be a mixed bag. And just because something’s on Amazon Prime in the U.S. doesn’t mean it will on Amazon Prime in Mexico. Which to me is just silly…I mean, what is the internet even for, then?
You can search for things in English or Spanish. While results will always be in Spanish, it’s nice to be able to search for what you want in your own language. Sometimes I’ve even found what I wanted on the U.S. site, and just copied and pasted the product title into the search bar to bring up the same thing on the Mexico one.
Reviews have been weird lately. For some reason, I can’t get the Amazon Mexico site to show me all of the reviews, no matter how I filter them. Weirdly, though, they’ll show me reviews in languages that I do not speak. Mostly I get them in Spanish and English, at least, but honestly, I’d prefer to see more than what they’ll let me.
Once in a while you’ll wait all day to receive a package and it won’t come. Infuriatingly, you might get an email later that says “Delivery was attempted,” to which you will say “No it wasn’t, I was here the whole time!” and jump up and down like Rumpelstiltskin. This has happened to me a couple of different times. Once it made me so mad that I cancelled my Prime subscription over it. But I was able to resolve it by…
Customer service. Call me old fashioned, but when I need something from a company I want to talk to a person, not be sent in circles by their on-site bots. It hasn’t been easy to get to — usually I’ve simply Googled the Amazon Mexico customer service number because it’s nearly impossible to find it on the site — but once you do, the people on the other end are very nice and helpful. They’ve helped me track down lost packages a couple of different times. Best of all, they’ve been patient while I’ve been like, “Okay, so just…let me get this straight one more time to make sure I understand what’s going to happen.”
Should you use Amazon Mexico? I don’t know, man. It’s hard to make decisions under our complex economical system that don’t harm anyone. But if you need a bargain on a specific thing that you probably can’t find elsewhere, Amazon Mexico is worth a shot.
Just don’t count on being able to find your favorite lip balm.
In January, President Sheinbaum mentioned that the Ayotzinapa investigation would continue under her watch. (Gustavo Alberto/Cuartoscuro)
I will admit that I had trouble sleeping last night.
My own personal relationship with Mexico began nearly 30 years ago as a business student at the University of Wisconsin excited about the prospects of the newly signed NAFTA agreement and the potential it would bring. It pains me to think that, 30 years later and having brought tremendous benefits to both nations, we are now at a moment of breaking the agreement and imposing tariffs on each other.
As I could not sleep, in the middle of the night, I decided to write the imaginary message below that I think Sheinbaum should communicate to the American people on this historic day.
From my perspective, Sheinbaum has done a great job so far, but nevertheless, I wanted to share my own thoughts and perspective…
From President Sheinbaum to the American people…..
Today is not a day of anger for us Mexicans, but rather one of profound sadness. One of pain. We cannot pretend to ignore the tariffs that are starting today. We cannot pretend that they will not hurt us economically. We cannot pretend that they will not cause significant hardship for many Mexican families. Of course, they will.
Mexico is in many places still a very poor country. Our economy is less than 15% the size of the United States economy. Our population is about a third of that of the United States. Our gross domestic product (GDP) per person is less than 20% of that of the United States in nominal terms and less than a third adjusted for purchasing power parity. We are far from economic equals. Said differently, the average American is more than 3.4 times wealthier than the average Mexican.
We have worked hard to make Mexico a better place for the average Mexican, and we are succeeding. That is why the net migration of Mexicans to the United States is actually negative over the past decade. In other words, more Mexicans have left the United States than have gone there to live now for over a decade. This is an indication that we are creating opportunities for our own people in a way that we had not done for generations.
A big part of this success is due to the opportunities that have come to our people through free trade. The NAFTA agreement signed over 30 years ago, upgraded to the USMCA free trade agreement in 2018, has, in many ways, been the envy of the world. It has brought benefits to both of our countries: increased wealth, high-paying jobs and co-production of goods that allow us to be competitive and reduce our dependency on China. It has resulted in our two countries not just being neighbors, not just friends, but becoming true partners in the global economy.
Apart from trade, the United States is right to bring up areas where Mexico can do better. I agree, I understand, and I am committed to our country doing better. Perhaps most importantly, I have the support of the Mexican people behind me with an over 80% approval rating. I have taken some significant steps, different from my predecessors, to demonstrate my commitment to the American people for Mexico to do better. In just the first five months of my six-year term, we have demonstrated a historic level of commitment. To name a few action items, we have:
– Offered to match U.S. tariff levels on all Chinese goods
– Offered to allow the U.S. to evaluate and approve key Chinese investments in our country
We Mexicans are united with Americans in wanting to reduce the violence on both sides of the border that comes with the drug trade. We are united with Americans in wanting to build a strong trade partnership that allows both of our countries to compete with China. And we are united with Americans in wanting to give our citizens opportunities to grow and improve the livelihoods of their families.
Millions of Mexicans live in the United States. Millions of Americans live in Mexico. Millions of both countries’ citizens travel to each other’s country to vacation, do business and visit family and friends each year. This relationship goes back hundreds of years. This relationship will go on for hundreds more.
Finally, a message to President Trump: Let us work to make the legacy of our presidencies be one of further uniting our two countries, not of attempting to pull them apart. It is a historic moment and we have a historic opportunity to make both of our nations stronger than ever before through increased cooperation. Let’s seize the moment for the good of both of our citizens.
Your neighbor, friend and partner,
Claudia Sheinbaum
Travis Bembenek is the CEO ofMexico News Daily and has been living, working or playing in Mexico for nearly 30 years.
As the threat of U.S. tariffs loomed over Mexico, President Sheinbaum focuses on positive news at her Monday conference. (Presidencia)
At her Monday morning press conference, President Claudia Sheinbaum spoke about her sky-high approval rating, per the results of a recent poll.
She also highlighted that the number of people in formal sector jobs is currently at an all-time high and noted that the majority of cartel figures her government sent to the United States last week were arrested during the six-year term of her predecessor and political mentor Andrés Manuel López Obrador.
In addition, Sheinbaum spoke about the United States’ tariffs on Mexican exports that are scheduled to take effect Tuesday (see MND’s report here) and provided an update on the number of deportees Mexico has received from the U.S. since President Donald Trump took office on Jan. 20 (see MND’s report here).
“There is an [economic] plan, which is Plan México,” Sheinbaum added.
The president also said her government has maintained a position of “strength” in its bilateral relationship with the United States and will “always” defend Mexico and its people.
“That gives us strength as a government. … In addition there is no difference between the people and the government — we are one and we are working for the well-being of Mexico,” Sheinbaum said.
More than 22 million people in formal sector jobs
Sheinbaum highlighted that data showed that more than 22.43 million people were in formal sector jobs and registered with the Mexican Social Security Institute (IMSS) in February.
“It’s not just a record high for the month of February, but a historic employment figure in the country,” she said.
Zoé Robledo, director of the Mexican Social Security Institute (IMSS) shares recent data on registered formal sector workers. (Presidencia)
Earlier in the press conference, IMSS General Director Zoé Robledo said that the average daily base salary of formal sector workers had reached a record high of 619.6 pesos (about US $30).
“This is thanks to the [government] policy of increasing the minimum wage, which drives up the base salary [for formal sector workers],” Robledo said.
“This means that there were arrests of generators of violence. That is significant,” she said.
Among the drug traffickers (or alleged drug traffickers) detained during López Obrador’s presidency and sent to the U.S. last Thursday was Rafael Caro Quintero, founder of the now-defunct Guadalajara Cartel and the convicted murderer of United States DEA agent Enrique “Kiki” Camarena.
By Mexico News Daily chief staff writer Peter Davies (peter.davies@mexiconewsdaily.com)
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