Founded in Argentina in 1999, Mercado Libre now boasts a gross sales volume of over US $51.5 billion. (Mercado Libre/Facebook)
Latin American e-commerce giant Mercado Libre will create 10,100 jobs in Mexico this year, bringing its total workforce to 35,800 employees, the company’s Chief People Officer Sebastián Fernández Silva announced on Tuesday.
Mercado Libre has the ambitious plan of increasing its workforce as it incorporates AI into its operations. (Mercado Libra/Faccebook
“With the goal of continuing to expand our business, this year we will create 28,000 new jobs and invest US $13.2 billion in the (Latin American) region, 36% more than in 2024,” said Fernández.
This will bring the total number of employees in the region to around 112,000. Most new jobs will be in logistics, with 21,700 new positions, and technology with 3,300 jobs.
The workforce growth “will allow us to continue expanding our logistics network to make shipments faster and cheaper,” Fernández said. “It also allows us to continue developing what we do with technology and products to continue revolutionizing the way people buy, advertise, sell, pay, finance, and ship throughout the region.”
Mercado Libre claims to be the main source of income for 1.8 million families across Latin America and supports an estimated 234,000 indirect jobs in the countries where it operates.
The Uruguay-based tech company was founded in Argentina in 1999 and has grown to become a major e-commerce power in Latin America, competing with the likes of Amazon.
The company operates in 18 countries and posted record revenue and profits last year, with a net turnover of $21 billion and a gross sales volume of over $51.5 billion. It has grown at an annual rate of 30% for more than two decades.
According to Fernández, Mercado Libre will continue to hire new staff even as it incorporates artificial intelligence and other digital technologies into its operations. He said that robots are not replacing people but instead are helping to eliminate physically strenuous tasks for employees.
The company says it is committed to hiring a diverse workforce. Mercado Libre’s workforce is made up of around 46% women, with a 28% female C-suite level. The average age of its employees is 30 years old.
Almost half of Mercado Libre’s 2025 investments will be spent in Brazil, around $6.2 billion, with the creation of 13,800 new jobs. Brazil is the company’s largest market, contributing about 55% of its revenue.
In addition, 2,300 jobs will be created in Argentina, 900 in Chile, 800 in Colombia and 60 in Uruguay.
Sheinbaum's inclusion on the list comes four months after Time announced she was among 10 finalists in the running for its 2024 "Person of the Year" designation. (Graciela López/Cuartoscuro)
President Claudia Sheinbaum and Mexican actor Diego Luna are among “the 100 most influential people of 2025,” according to Time magazine.
They join people such as United States President Donald Trump, tennis superstar Serena Williams and tech “titan” Mark Zuckerberg on the prestigious list that Time unveiled on Wednesday.
The 2025 TIME100 is here: TIME’s annual list of the world’s most influential people https://t.co/O1HtHYtj1o
“She likes to be called Presidenta, with an a at the end. She made history in 2024 by becoming the first woman to lead Mexico,” Mexican journalist Jorge Ramos wrote about Sheinbaum in a brief profile published by Time to accompany its “100 most influential people” list.
Ramos said that “Sheinbaum, 62, a politician and climate scientist, is facing two major challenges: violence fueled by drug traffickers and the expansionist instincts of U.S. President Donald Trump, who has placed tariffs on Mexico citing drugs and immigrant trafficking at the border.”
“… With the slogan ‘It’s time for women,’ she won the presidency, and her party, Morena, controls the Congress and most states. But we have yet to see what la Presidenta will do with that mandate,” wrote Ramos, who appeared on Time’s “100 most influential people” list in 2015.
Sheinbaum is one of 22 “leaders” on Time’s 2025 list. The others include Trump, United Kingdom Prime Minister Keir Starmer, Argentine President Javier Milei, journalist Megyn Kelly and Venezuelan opposition leader María Corina Machado.
From Toluca to Time’s ‘most influential people’ list
Diego Luna, a 45-year-old native of México state capital Toluca, joins “artists” such as singer-songwriter Ed Sheeran, actress Scarlet Johansson and Mexican-American fashion designer Willy Chavarria on Time’s “100 most influential people of 2025” list.
Diego Luna at the premiere of the series Andor, in which he plays spy Cassian Andor during the five years leading up to the story of Star Wars. (@starwars/X)
“I would say that he is on this list for the same reasons. He grew up in the theater world, finding solace and adventure backstage. His mother, an artist and beloved costume designer, and his father, a master of set design, never thought Diego would find his own way and break through ‘the first wall’ (in theatrical terms),” he continued.
“But with his wonderful energy and ridiculously incredible charisma, he knew that onstage he was going to experience a catharsis for the common good. His laughter resonates and expands,” wrote García Bernal, who was one of Time’s “100 most influential people” of 2016.
Luna has appeared in dozens of movies, including Mexican classics such as “Y tu mamá también” (with García Bernal), and “Rogue One: A Star Wars Story.”
He is also well-known for playing the role of drug trafficker Miguel Ángel Félix Gallardo in the series “Narcos: Mexico.”
AMLO and Salma Hayek among Time’s ‘100 most influential people’ in previous years
Sheinbaum and Luna join a number of Mexicans who have been included on Time’s “100 most influential people” lists.
One of the Yucatán Peninsula's natural underground pools, or cenotes, will soon offer visitors a museum experience in addition to its breathtaking beauty. (Muúk Karant/Instagram)
Mexican real estate firm Muúk Karant has announced that it is building the first pre-Columbian museum within a cenote, as part of a new residential project in Valladolid with the same name.
Cenotes are underground natural pools found throughout Quintana Roo, Yucatán and Campeche, the three states that make up the Yucatán Península.
According to the real estate firm, the museum will house a private collection of over 300 pre-Columbian artifacts at the heart of a cenote with vaults that reach 15 meters high. The firm has said the museum seeks to preserve and enhance “the culture and ancestral roots” of Mexico.
Curated in chronological order, the museum will showcase pieces from the region and other parts of Mexico, including wooden carvings used in rituals, ceremonial knives, vases, pre-Columbian musical instruments and jade and obsidian figures.
Images shared by the developer show that access to the museum will be through a spiral staircase that descends into the cenote’s crystal-clear waters. At the top, a grate will allow natural light to filter in.
The residential project of Muúk Karant will feature 604 residential lots over 84 hectares, in addition to four natural cenotes, one of which will house the museum. The development will also feature a boutique hotel, artificial swimming pools, lush greenery, an amphitheater, a sports area, a spa and more.
“The Muúk Karant residential area was designed to preserve and enhance the cenotes and the extensive vegetation that cover this large development, creating harmony with nature,” the company has said.
The project, located just a few kilometers from the colonial-era city of Valladolid, is expected to open in 2026.
Founded over 20 years ago, Muúk Karant develops real estate in Mexico’s southern region. The company is also developing residential projects under the same name in Tulum and Mérida.
About two-fifths of the 1.4 million Honda vehicles sold in the U.S. last year were imported from Mexico and Canada. (Shutterstock)
Japanese automaker Honda has pushed back against reports that it is preparing to move all car production from Mexico and Canada to the United States in response to new U.S. tariffs.
Nikkei’s Tuesday report that Honda was planning to move all production out of Mexico and Canada caused a strong reaction given Honda’s recent announcement that it would produce future models of the Honda Civic in the U.S. (Honda)
Anita Anand, Canada’s Minister of Innovation, Science and Industry, had a similar reaction, writing in a social media post of her own that “Honda has communicated that no such production decisions affecting Canadian operations have been made, and are not being considered at this time.”
Canadian Finance Minister François-Philippe Champagne said he would be talking to Honda later Tuesday to clarify the situation.
By Tuesday evening, both Honda Mexico and Honda Canada communicated to members of the news media that no decisions had been made to alter production at their respective plants. “No production decisions impacting our facilities in Mexico have been made, nor are any under consideration,” Honda Mexico said in a statement. Honda Canada echoed this, stating, “Honda Canada is not contemplating any modifications at this moment.”
Despite the denials, the rumors have unsettled officials in both countries, particularly following Honda’s earlier decision to relocate production of its bestselling model from Mexico to the U.S.
Mexico had reportedly been chosen for the Civic — recently named the 2025 North American Car of the Year — because rising costs were making it tough to produce the car in Indiana and Canada. Instead, Honda is set to produce the car at its Greensburg, Indiana, plant and is expected to begin churning out around 210,000 vehicles each year beginning in March 2028.
Nearly 40% of Honda’s global sales were in the U.S., the company’s biggest market in 2024. About two-fifths of the 1.4 million Honda vehicles sold in the U.S. last year were imported from Mexico and Canada.
Trump made the assertion in an interview with Fox News's Rachel Campos-Duffy. (White House/X)
United States President Donald Trump asserted in an interview broadcast on Tuesday that Mexico is “very afraid” of drug cartels, which he claimed “run large sections” of the country.
He made the assertions in an interview with Fox News after interviewer Rachel Campos-Duffy asked him what his plan is to combat Mexican cartels.
TRUMP:
“Mexico is, I think, very, very afraid of the cartels actually”
“I think the cartels run large sections of Mexico.
“And I don’t want to say that, because I’m getting along very well with the President (of Mexico)”
“So we’re working with Mexico,” he said, referring to the Mexican government led by President Claudia Sheinbaum.
“Mexico is, I think, very afraid of the cartels actually. I think the cartels run large sections of Mexico and I don’t want to say that because I’m getting along very well with the president,” Trump said.
Without providing any source for her claim, Campos-Duffy responded that “40% of the land mass in Mexico is controlled by the cartels.”
“Yeah, maybe at least, OK,” Trump said. “You know, at least, it’s hard to believe.”
In an address to the U.S. Congress last month, Trump hyperbolically asserted that cartels have “total control” over Mexico and pose “a grave threat to our national security.”
In his Tuesday interview with Fox, the U.S. president went on to say that he is “dealing very nicely” with Sheinbaum, whom he described as “a very fine woman.”
“…The relationship is very good and we want to help her and we want to help Mexico because you can’t run a country like that, you just can’t,” he said.
“[The cartels] have made a fortune and I will say it’s been cut back, way back, because of the border. The border is very, very secure right now,” Trump said.
In the interview, U.S. President Donald Trump celebrated his “secure” border and expressed interest in helping the Mexican government to act against cartels. (Cuartoscuro)
The interview was broadcast the same day that the United States Department of the Interior announced the transfer of a large swath of land along the U.S.-Mexico border to the U.S. army.
“The land will be transferred to the Department of the Army for a period of three years, subject to valid existing rights. This action is intended to safeguard sensitive natural and cultural resources in the region while enabling the Department of the Army to support U.S. Border Patrol operations in securing the border and preventing illegal immigration,” the department said.
On the first day of his second term, the U.S. president was asked whether he would consider “ordering U.S. special forces into Mexico” to “take out” cartels.
Sheinbaum rejects assertion that her government is afraid of cartels
At her Wednesday morning press conference, Sheinbaum rejected Trump’s claim that her government is “afraid” of cartels.
She said that Trump and other U.S. officials have their own unique “way of communicating” — an expression she has used previously to effectively dismiss incendiary remarks made by the U.S. president.
Sheinbaum said that the federal government’s security cabinet is “acting every day” to combat crime and violence in Mexico.
“… There is a reduction in crime and the reduction will continue,” she said.
Sheinbaum rejected Trump’s claim on Wednesday morning, emphasizing her government’s work to reduce crime and violence every day. (Daniel Augusto/Cuartoscuro)
Trump’s cartel control claim
There are various estimates on the percentage of territory that cartels “control” in Mexico, but it is important to stress that they are just that — estimates.
In March 2021, the then-commander of the United States Northern Command, General Glen D. VanHerck, said that “transnational criminal organizations” operate “oftentimes in ungoverned areas” that account for “30% to 35% of Mexico.”
“This can be seen in squads of gunmen operating openly, running checkpoints, ordering curfews, dictating what journalists can report, charging quotas on sales of avocados, moving votes for candidates, and controlling (or assassinating) mayors,” he wrote.
“Yet unlike with the Islamic State caliphate, the Mexican government still operates in those turfs. It provides electricity, sends teachers and collects garbage. And the army can still go in (while the cartel gunmen hide) and then leave (and they come out again),” Grillo added.
A summary of security developments since Trump took office
There have been a number of security-related developments in Mexico and the United States since Trump began his second term on Jan. 20.
Since Trump returned to the White House, Sheinbaum has repeatedly said that her government is willing to collaborate and cooperate with the United States on security issues, while stressing that it will not accept subordination or any violation of Mexico’s sovereignty. The Mexican government provides regular updates on its progress in combating organized crime, during which it has highlighted that arrests, drug seizures and firearms confiscations are on the rise while homicides are declining.
Here is a chronology of some of the key security developments over the past three months. The hyperlinks will take you to previous Mexico News Daily articles.
Jan. 20: President Trump signed executive orders declaring a “national emergency” at the United States southern border and laying the groundwork for the designation of Mexican cartels as foreign terrorist organizations.
Feb. 1: The White House asserted that “Mexican drug trafficking organizations have an intolerable alliance with the government of Mexico,” and that “the government of Mexico has afforded safe havens for the cartels to engage in the manufacturing and transportation of dangerous narcotics.”
March 25: Trump praised the Mexican government for ramping up the fight against the trafficking of illegal drugs to the U.S. and the northward flow of migrants.
Duck carnitas became all the rage when Mexico City restauranteur Enrique Olvera opened Cosme in New York City's Flatiron District. Learn how to make this menu item at home. (Victoria Cookware)
Cosme, a restaurant on East 21st Street in New York City’s Flatiron District, opened in 2014. It’s Mexican, yes, but not the kind of Mexican of the Midwest that’s actually Tex-Mex and is smothered in cheddar cheese and sour cream.
It’s the kind of Mexican that wears black and doesn’t explain itself. Which is to say, it’s Mexican food as interpreted by Chef Enrique Olvera — who, at the time, was already famous for a Mexico City restaurant called Pujol, which either stirs up or cures people’s existential dread with their famous 1,000-day-old mole.
Cosme’s co-owner Enrique Olvera is the founder of Pujol, a world-renowned, low-key Mexico City fine dining restaurant in the tony Polanco neighborhood. (Pujol/Instagram)
They served dishes that made food critics write like they’d just discovered adjectives. There was the duck carnitas — which we’ll get to in a minute — and cobia al pastor, and the now-famous corn husk meringue, which is what happens when you turn a tamale into a French dessert and somehow make it taste like nostalgia.
Cosme made it onto The World’s 50 Best Restaurants list. It got reviewed, revered, deconstructed, meme-ified. The staff danced in the kitchen. Sometimes with each other. Sometimes with the duck. It was a success, in the way few things are in New York without also being soul-crushing.
Cooking duck this way — slowly, submerged in its own fat, then shredded and crisped — is an act of culinary judo. You don’t fight the duck. You let it be itself, just more so.
And that’s the genius.
Don’t let hundreds of dollars in airfare get in the way of you having this peasant food-meets haute cuisine dish. Learn how to make it below. (Cosme/Instagram)
Cosme didn’t invent duck carnitas. But it introduced it to a city where duck is usually lacquered or stuffed into ravioli, and carnitas are usually US $3 and wrapped in foil. By making this dish with care, with tradition, and then charging $89 for it — they elevated it. Or ruined it. Or both. Capitalism is tricky that way.
But in that moment, duck carnitas became more than food. It became an argument: that the old ways and the new ones could meet somewhere in the middle, preferably over tortillas. If you try to make this recipe, let me know what you think in the comments!
Enough duck fat to cover the duck (or a mix of olive oil and lard as a substitute)
Eden Eats NYC, with chef Daniela Soto-Innes at Cosme (duck carnitas)
Get a closer look at what you’re making here in this video.
Instructions
Season the Duck: Pat duck pieces dry and season all over with kosher salt and black pepper. Refrigerate uncovered for at least 2 hours or overnight to allow the skin to dry slightly.
Preheat Oven: Preheat oven to 275°F (135°C).
Assemble Ingredients in Pot: In a large Dutch oven or heavy oven-safe pot, place duck pieces in a single layer. Add garlic, onion, orange halves (squeeze juice into the pot before adding), cinnamon stick, bay leaves, peppercorns, oregano, and any optional aromatics.
Add Fat: Pour duck fat (or substitute fat) over the contents until the duck is fully submerged.
Slow Cook: Bring the pot to a gentle simmer on the stovetop, then transfer to the oven. Cook uncovered for 2.5 to 3 hours, or until the duck is tender and easily pulled apart with a fork.
Shred and Crisp: Remove duck from the fat and let cool slightly. Shred the meat into bite-sized chunks. In a large skillet over medium-high heat, add a small amount of reserved duck fat and crisp the shredded meat until golden and browned in spots.
Stephen Randall has lived in Mexico since 2018 by way of Kentucky, and before that, Germany. He’s an enthusiastic amateur chef who takes inspiration from many different cuisines, with favorites including Mexican and Mediterranean.
What's been happening in Los Cabos? (Los Cabos Tuna Jackpot/Facebook)
La Paz is seeing robust tourism numbers, with 194% more international arrivals in January 2025 compared to the same month in 2024. Domestic arrivals were also up 9.2%, suggesting a strong year is underway for the capital of Baja California Sur.
After record numbers in recent years, Los Cabos continues to draw plenty of visitors in 2025. However, slight decreases have been noted, with visitors down 1.6% in January compared to the previous year and hotel rates slipping 5% over the 2024 average— albeit still expensive at US $508 per night.
New flights and spring nreak, both happening now, should boost those numbers.
Volaris announces new flights to Los Cabos from Oakland
The low-cost carrier’s new San José del Cabo to Oakland flight has no scheduled end date. (Airbus)
Los Cabos’ increased popularity in recent years has been made possible by enhanced connectivity to U.S. markets. Mexican low-cost Volaris is the latest airline to bring tourists to San José del Cabo International Airport with daily flights from Oakland. The new route began on March 20 and will continue indefinitely. Two flights leave Oakland Airport every afternoon and return daily from SJD at 5:09 and 8:30 p.m.
“This new service makes travel to Cabo more convenient and affordable than ever for millions of Bay Area travelers,” confirms Craig Simon, Port of Oakland’s Aviation Director. Flight rates start at US $99 one way.
Notably, California provides more Los Cabos tourists than any other U.S. state. In 2024, 32% of all U.S. visitors to the destination originated in the Golden State. This is reflected in the level of connectivity, with eight airports in the state servicing Los Cabos.
Los Cabos emerges as Mexico’s top spring break destination
Up to 50,000 foreign students are expected to descend on Los Cabos for spring break this year. (Student City)
2025 hasn’t brought a great spring break season for Cancún, which has seen its numbers drop from an all-time high of 120,000 to the 30,000–35,000 projected for this year. This downturn, coinciding with decreased numbers in the other popular Mexican destinations, has allowed Los Cabos to assert itself as the nation’s premier spring break spot.
The numbers back up Los Cabos’ primacy. An estimated 50 to 55,000 students were expected this year, predominantly in Cabo San Lucas. Playa El Médano, the two-mile stretch of golden sand filled with bars and restaurants, is the heart of the spring break action. Thus, it shouldn’t be surprising that visiting students have been clustered in 14 resorts in and around Médano Beach.
Local bars and clubs eagerly awaited spring break, hoping for a boost after the dispiriting 50% decrease in sales in 2024. The early returns are positive, with hotel occupancy trending towards 80% and nightlife sales up by an estimated 80%. The final nightlife boom numbers will be known in the next few weeks, with an expected $40 million economic impact from spring break this year.
Despite the boost, the urban image problems plaguing the CSL nightlife scene aren’t all gone. A hotel survey notes that spring break visitors still find Cabo San Lucas a little dirty and smelly— not the adjectives the tourism industry would hope for.
Why reservations are needed to see Mexico’s most beautiful beach, Playa Balandra in La Paz
The famous mushroom-shaped rock formation at Playa Balandra. (Wikimedia Commons)
It’s perhaps the nation’s most spectacular beach. However, it’s also one of the few tourists have to pay to visit. And like a popular restaurant, you need to make reservations first.
Playa Balandra has been a Protected Natural Area (ANP) since 2012. As such, a maximum tally of visitors has since been instituted to ensure clean conditions and sustainability. There are now two timeframes to visit the beach, morning and afternoon, each capped at 450 visitors. As of 2025, tourists must make reservations, paying 120 pesos for a digital bracelet through the National Commission of Protected Natural Areas (Conanp).
The bracelets should be purchased before arriving at the beach as you can’t buy them there. Locals, meanwhile, are exempted from this policy, provided they have proper ID.
Welcome to virtual reality in Los Cabos
With VR, the Los Cabos experience can start before you ever get there. (Visit Los Cabos)
While prospective travelers are online planning a Balandra visit, they’ll also want to check out the new digital initiatives unveiled by the Los Cabos Tourism Trust (Fiturca), including virtual reality tours of hotels and activities.
The destination became the first in Mexico to enter the Metaverse, thanks to a collaboration with Duba-based company Nostra. Now, using Oculus VR headsets, potential visitors can experience what it feels like to catch a marlin or play a world-class golf course in Los Cabos before they book a trip. To find out how to access the Los Cabos Metaverse, click here.
This new technology is expected to boost Los Cabos’ profile in countries outside North America — where it is already a popular vacation destination — increasing visits from places like the United Kingdom, Spain and Brazil.
Fiturca has also partnered with AudioEye to make accessing its new digital features easy for everyone, including those with disabilities. Even without VR headsets, the new Los Cabos 360 tool provides stunning 360-degree views of the top local attractions and offers easy-to-click, AI-enhanced information features.
Chris Sands is the Cabo San Lucas local expert for the USA Today travel website 10 Best, writer of Fodor’s Los Cabos travel guidebook and a contributor to numerous websites and publications, including Tasting Table, Marriott Bonvoy Traveler, Forbes Travel Guide, Porthole Cruise, Cabo Living and Mexico News Daily. His specialty is travel-related content and lifestyle features focused on food, wine and golf.
Trump's tariffs and accelerating trends in robotics and AI should be a wake-up call for Mexico. This is Part 1: How did we get here? (Unsplash)
Trump’s tariffs and accelerating trends in robotics and AI should be a wake-up call for Mexico.
Part 1: How did we get here?
Part 2: Why is a rethink of the Mexican economy necessary?
Part 3: What could a rethink of the Mexican economy look like?
The purpose of this three-part series is to reflect on the emerging trends of trade protectionism (tariffs), AI and robotics, consider the potential impacts on Mexico and foster a discussion on possible solutions. Please share your thoughts in the comments section and let’s have an inspiring and engaging discussion and debate.
Part 1: How did we get here?
Until recently, the world has operated under the premise that increased international trade and globalization would “raise all boats” and increase living standards for all who participated.
Since the end of World War II, this has been the dominant thinking of how to grow the global economy and bring about better integration. The model was to bring in more trading partners, sell more to each other, grow the market, increase standards of living for all and help ensure peace through the interconnectedness created by trade.
One by one, more countries were brought into the mix: first the countries of Western Europe, then Eastern Europe, Japan, Korea, Taiwan, the countries of Southeast Asia, China and of course, Mexico. Mexico was somewhat late to the party, being a relatively closed economy until the North American Free Trade Agreement (NAFTA) was signed with the United States and Canada in 1992. This agreement ushered in a wave of tariff-free trade agreements signed between Mexico that now include a total of 13 agreements covering 50 countries.
Mexico’s role in the free trade world was a natural and logical one — its lower cost of labor and geographic proximity to the United States made it a perfect co-production partner for manufacturing goods. When NAFTA was first signed, many in the U.S. feared that manufacturing jobs would move to Mexico to the detriment of American workers (the infamous “giant sucking sound” coined by Ross Perot).
The signing of the North American Free Trade Agreement (NAFTA) in 1992. (UNAM)
Indeed, many new manufacturing jobs were created in Mexico, but it was China’s entry into the World Trade Organization (WTO) that ultimately had the biggest impact on U.S. workers and communities. Millions of jobs and countless factories went away as the production of many goods was moved to China.
The Mexican manufacturing boom
Early in my career, the first company I worked for was part of this trend. Originally with manufacturing located only in Wisconsin, in the early 1990’s the company bought a plant in central Mexico expecting to send manufacturing work there. Although some work was ultimately moved there, far more was sent to China. This was despite the fact that many of the end customers were actually in Mexico. It was cheaper to produce in China and ship to Mexico than to produce locally in Mexico.
Mexican manufacturing over time became increasingly competitive in certain market segments, and up until the COVID-19 pandemic, a “new normal” was settling in with China, Mexico and the U.S. all focused on the products that they could most competitively produce.
Of course, as we all know, the pandemic changed everything.
Supply chains broke down and companies everywhere began to question their manufacturing footprints. Words like nearshoring and friendshoring joined our vernacular, and Mexico seemed extremely well positioned to be a major beneficiary of the new manufacturing and production trends taking shape around the world.
Things changed quickly.
In 2023, Mexico, for the first time in over 20 years, became the leading supplier of goods to the United States. Mexico was clearly taking manufacturing market share from China and companies from around the globe were increasing production and reinvesting profits into their Mexican operations. In 2024, the country further increased its share of exports to the U.S., with products from Mexico representing over 16% and China falling below 14%.
Granted, the “new” component of FDI was concerningly low, but most people chalked that up to the uncertainty of the year given that there were presidential elections in both Mexico and the United States. Newly elected President Sheinbaum seemed to be far more “business friendly” than her predecessor, the inflation rate was coming down, the peso was stabilizing and both the global and Mexican economies seemed on firm footing.
But things changed quickly.
Trump’s election win brought about a sudden wave of uncertainty and attention to Mexico. Most of the initial demands from the United States were that Mexico control migration, crack down on the cartels, stop the flow of fentanyl and accept deportees. All important issues, but none that initially seemed to be a risk to economic momentum.
Few people expected that Trump would really attempt to undo the free trade agreement he proudly signed with Canada and Mexico during his first term as president. His initial threats of tariffs were directly linked to wanting to see more progress from Mexico on these non-economic issues. And to many people on both sides of the border, the argument seemed fair: “Mexico, help us clean up the issues that are causing problems in the U.S., and we will keep our free trade agreement intact.”
That being said, in just the past few weeks, the narrative from the United States on tariffs changed.
Trump’s tariff discourse takes a turn
Despite some initial quick and tangible progress from Mexico on the very issues that Trump initially emphasized, Trump has refocused the “need for tariffs” for economic reasons. Trump began to question the need for any manufacturing at all to take place outside of the United States. He continued to lament the lost jobs and broken communities caused by moving work abroad, and insisted that the focus needed to be on bringing these jobs back to the U.S.
And so here we are today. The most common argument against all of this is that the U.S. doesn’t have enough labor, nor the energy generation capacity, to be able to bring back a significant amount of jobs.
A logical concern is that moving work back to the higher-paid U.S. workforce and higher-cost manufacturing environment will cause significant inflation. But what if that is too overly simplistic or perhaps even an outdated explanation? What if companies could and do move significant work back, the workforce and energy production are found, and inflation is kept in check?
Let’s even completely forget about tariffs for a moment. Although it might sound like science fiction, consider the impact that increased robotics could have on the manufacturing workforce of the future. Consider what rapidly improving AI and factory “digital twins” could do to improve manufacturing efficiencies. Consider for a moment that we might just be on the brink of a new industrial revolution not seen in decades.
And then consider what this could all mean for Mexico and for what a rethink of the Mexican economy could look like. Part 2 will be published tomorrow in MND.
Thanks for reading.
Travis Bembenek is the CEO ofMexico News Daily and has been living, working or playing in Mexico for nearly 30 years.
The United States' proposed 21% tax on Mexican tomatoes and changes at the National Migration Institute were among the issues President Claudia Sheinbaum discussed during her Tuesday morning press conference. (Graciela López/Cuartoscuro)
The United States’ proposed tariff on Mexican tomatoes, a change of leadership at the National Migration Institute and the need to keep deportee reception centers open were among the issues President Claudia Sheinbaum spoke about at her Tuesday morning press conference.
Here is a recap of the president’s April 15 mañanera.
‘That’s wrong’: Sheinbaum hits out at US for not notifying Mexican government about tomato tariff
During her Q&A session with reporters, Sheinbaum turned her attention to the United States government’s announcement on Monday that it intends to impose duties of almost 21% on imports of most tomatoes from Mexico starting in July.
“About tomatoes, it’s important that this is known,” she told reporters.
“The Mexican government wasn’t notified, not through the Ministry of Foreign Affairs or the Ministry of the Economy or the Ministry of Agriculture,” Sheinbaum said, adding that the U.S. government only told the U.S.-based lawyers of Mexican tomato producers about its intention to terminate a six-year-old bilateral agreement and impose duties on Mexican tomatoes.
“That’s wrong. They should have notified the Mexican government as well,” she said.
Sheinbaum denied that Mexican tomato growers are dumping the fruit in the United States.
“Some United States producers complain that the price of Mexican tomatoes is lower,” she acknowledged before declaring that the Mexican government isn’t subsidizing Mexican growers.
“There is no dumping,” Sheinbaum said.
Like Agriculture Minister Julio Berdegué, the president expressed confidence that Mexico will succeed in having the proposed duties on Mexican tomatoes averted or suspended.
Whether the duties are imposed or not, Mexico will continue exporting tomatoes to the United States, Sheinbaum said.
She also said that Mexico could impose duties on imports of chicken and pork legs from the United States, products for which Mexico has active antidumping investigations.
Former Puebla governor to assume INM leadership on May 1
Sheinbaum told reporters that former Puebla governor Sergio Salómon will replace Francisco Garduño as director of the National Migration Institute (INM) on May 1.
She announced in October that Salómon, governor of Puebla between 2022 and 2024, would become the next head of the INM.
Outgoing INM director Francisco Garduño at a hearing in 2023. (Juan Ortega/Cuartoscuro)
Sheinbaum said that Salomón has not yet assumed the INM leadership because she wanted Garduño in the job during the initial period of the second Trump administration.
“You know that one of the important issues in the relationship with the United States is the issue of migration,” she said.
“… There was a lot of dialogue with the United States as the very beginning when President Trump arrived, so we didn’t want a transition [at the INM] at that time,” Sheinbaum said, explaining that Garduño has established relationships with “his counterpart in the United States” — presumably the head of U.S. Immigration and Customs Enforcement” — and “particularly” his opposite number in Guatemala.
She said in early March that the government would evaluate whether it was necessary to maintain the 10 shelters on the northern border or whether fewer than that number were required.
On Tuesday, Sheinbaum said the shelters would remain open because the U.S. government is saying “there will be more deportations.”
“So we need to have everything that is needed to be able to receive our compatriots,” she said
Starting on Sunday, April 20, and running through April 30, the festival will feature more than 50 activities, including music, dance, theater, exhibitions and family-friendly events. (Shutterstock)
After a 25-year hiatus, the city of Oaxaca’s spring festival, now renamed the Rodolfo Morales Spring Festival, is set to return as part of the city’s upcoming 493rd anniversary celebration.
Starting on Sunday, April 20, and running through April 30, the festival will feature more than 50 activities, including music, dance, theater, exhibitions and family-friendly events — all with free admission.
Oaxaca officials say the Spring Festival will help sustain tourism to the state capital, which typically slumps after Easter week, or Semana Santa. (Secretaría de Cultura del Gobierno de Oaxaca)
Organized under the auspices of the state’s Ministry of Culture and Arts (Seculta), the festival pays tribute to the renowned Oaxacan painter Rodolfo Morales, who dedicated his life to preserving the state’s heritage and traditions. Morales died in 2001.
“This is a very broad festival, in which we celebrate the arts, culture, music and sports,” Oaxaca de Juárez Mayor Raymundo Chagoya Villanueva said. “We kick off on April 20 with a 10-kilometer race. There will be artists giving free concerts in the public squares of Oaxaca, which is considered one of the country’s 11 heritage cities.”
The impact of the Rodolfo Morales Spring Festival isn’t expected to be that large, but still pretty good. Officials are projecting a total of 50,000 visitors and an economic impact of more than 100 million pesos (US $5 million).
“Historically, tourism declines sharply after Easter,” Chagoya Villanueva noted, alluding to the holiday that falls on Sunday, April 20 this year. “This event is specifically intended to attract this occupancy in both hotels and restaurants.”
Additional performances will include the Oaxaca Symphony Orchestra, marimba music and more.
Flavio Sosa Villavicencio, head of Seculta, emphasized the festival’s role in celebrating Oaxaca’s cultural magnificence and fostering community spirit, linking pre-Hispanic customs with contemporary urban life.
The festival, which used to be known simply as the Spring Festival, was an annual event in Oaxaca City before being discontinued some 25 years ago, though official records do not cite a reason. Following his death in 2001, the festival was renamed for Rodolfo Morales.
