Friday, August 29, 2025

The Mexico City Metro: Backbone of a sprawling transit system that gets Chilangos where they need to go

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Riders pack into a metro car
Millions of riders use the metro every day, taking advantage of affordable fares to travel between over 150 metro stations. (Victoria Valtierra Ruvalcaba/Cuartoscuro)

“The train car is the street, the Metro is the city, the ticket is the password to immerse yourself in the assembly of people, the crowd is the origin of the species, and the passenger (myself in this case, or any of the six million who come and go each day) accepts the hardships of coexistence.” 

— Mexican writer and chronicler extraordinaire of Mexico City Carlos Monsiváis in his essay “Sobre el Metro las coronas.


Apart from your most intimate relationships, you’re unlikely to get so close and personal with other people in Mexico City as you do when riding the metro system during peak hours.

Passengers took more than 1.1 billion trips on the Mexico City Metro last year, equating to 3.2 million journeys per day. Not quite the six million passengers Monsiváis referred to in his 1995 essay, but it can certainly feel like that is the correct number when your body is pressed up against one or more of your fellow travelers at 6 p.m. on a Friday evening.

The Mexico City Metro system is an immense art and anthropology museum, it is a bustling marketplace where all manner of goods and services are available for purchase, but first and foremost it is a massive public transit system, the backbone of a more expansive network of transporte público in the sprawling metropolitan area of the capital.

12 lines, 163 stations, 20,000 days of service 

Intermingling psychedelic worms — a tangled assortment of multi-colored lines — superimposed on a white backdrop, stretching out over 11 of Mexico City’s 16 boroughs and into four municipalities of neighboring México state.

Colorful lines form a simplified map of the Mexico City Metro
A partial, simplified map of the Mexico City Metro system. (Metro CDMX)

This is the map of the Mexico City Metro system.

The system today — 163 stations on 12 color-coded lines spanning 226.5 kilometers — developed from what was originally just one line, the pink Line 1, whose construction began in 1967 at a time when Mexico City desperately needed more public transit options to serve the needs of a population that grew rapidly in the 1950s and ’60s.

Twenty-seven months later, the work of 12,000 engineering experts and laborers was complete, and the first service ran between the Zaragoza and Chapultepec stations on Sept. 4, 1969, with both president Gustavo Díaz Ordaz and Mexico City mayor Alfonso Corona del Rosal on board.

Since that date, the Mexico City metro has operated every single day, meaning that it has now transported passengers on more than 20,000 consecutive days across a period of almost 56 years.

A historical photo of construction on the Mexico City Metro
Construction on Line 1 of the metro, seen here near the Salto del Agua station, began in 1967. (Archivo del Transporte CDMX)

After the inauguration of Line 1 in 1969, more lines opened in the following years and decades until the system reached its current size when Line 12 — the golden line — began service in 2012. One of the Mexico City Metro’s worst-ever disasters occurred on this line in 2021 when two train carriages plunged onto a busy road in the capital’s southeast due to the collapse of an overpass. Twenty-six people were killed and close to 100 were injured.

There have been other accidents over the years, including a 1975 collision between two trains at the Viaducto station on Line 2 that claimed more than 30 lives.

The rapid — or arduous — commute 

With a population of well over 20 million people in its metropolitan area, Mexico City needs more than a subway system to move its citizens.

The other public transit options — including Metrobús, light rail, suburban train, trolley bus, pesero and soaring cable car services — not only supplement the Metro but complement it as well, as many of their stations and stops feed passengers into the subway system, allowing them to complete their journeys.

The Mexico City Metro: Backbone of a capital

In Mexico City, a public transit ride can be a quick zip up a metro line, and it can also be an hours-long, patience-testing odyssey (or ordeal) involving various modes of transportation. Commuters who come into central Mexico City from the surrounding metro area municipalities of México state face some of the longest trips.

One such person is Maura Hernández, a domestic worker who lives in the México state municipality of Nicolás Romero, located around 40 kilometers northwest of central Mexico City.

She told Mexico News Daily that she travels up to two hours by bus or “combi” just to reach the Cuatro Caminos Metro station in Naucalpan, México state, from where she completes her journey to the homes at which she works in Mexico City neighborhoods including Del Valle and Polanco.

It takes Maura up to three hours to reach her workplaces from her home, meaning she can spend as many as six hours per day on public transit in Mexico City and México state. With such long journeys, it’s no surprise that many commuters take the opportunity to catch up on sleep — if they’re lucky enough to nab a seat.

While her trip by metro is the shortest part of her urban odyssey, Maura noted that is often the most uncomfortable.

“It’s very crowded,” she said, noting also that the trains sometimes stop for as long as 10 minutes — a common frustration for metro users.

Mexico City's cable car system, Cablebus.
The Cablebús cable car system is one of many extensions of Mexico City’s public transit. (Victoria Valtierra Ruvalcaba/Cuartoscuro)

While long commutes are a fact of life for Maura and many other commuters, a new form of transport in Mexico City is reducing travel times for some.

The capital now has three Cablebús (cable car) lines that whisk passengers through the air and deposit them near the Indios Verdes (Cablebús Line 1), Constitución de 1917 (Line 2), Santa Marta (Line 2) and Constituyentes (Line 3) metro stations.

Last Friday, I made my way by metro out to the eastern terminus of Cablebús Line 2 at Santa Marta, located around 20 kilometers southeast of downtown Mexico City at a point where the capital meets México state. From there I took the approximately 40-minute ride to the western terminus at Constitución de 1917, where the metro station of the same name is located.

As I flew over the cinder block sprawl of the densely populated Iztapalapa borough, looking down at colorful murals, clothes drying in the high-altitude sun, countless “roof dogs,” roosters, hens and even urban swine, I spoke to a number of Cablebús passengers, all of whom told me that the four-year-old cable car line saves them a considerable amount of time compared to their previous commutes.

Enrique and Concha, a couple, said that their children also use the cablebús to get to school, thus avoiding a slow bus or combi ride to the Constitución de 1917 Metro Station through streets that are often winding and bumpy.

Another benefit, Enrique noted, is that the cablebús contaminates far less than many other forms of transport, significantly reducing emissions in a city known for its poor air quality.

Two photos of Mexico City public transit commuters
Enrique and Concha, left, say the cablebús is a faster, easier way for their children to get to school compared to ground transport. Tattoo artist Ricardo, right, uses it to commute from Iztapalapa to his workplace near the historic center. (Peter Davies)

Ricardo, a tattoo artist, uses the smooth and almost-silent cablebús on a near daily basis to reach the metro and continue his commute to his workplace east of the historic center of Mexico City.

The Iztapalapa resident said the cablebús shaves an hour or more off his traveling time, and declared he had absolutely no complaints about the service. He said it wasn’t feasible for the government to extend the metro system into the hilly terrain over which much of Cablebús Line 2 runs, and therefore the next best thing was to have an aerial transport system that avoids traffic and connects to the subway at both ends.

Citing Mexico City’s Mobility Ministry, Bloomberg reported late last year that “the Cablebús system has more than halved trips that used to take an hour and a half by bus or taxi.”

Crowds are not a concern for commuters on this form of public transit as each car is limited to 10 people, all of whom have a designated seat. Stepping out of a cable car and into a metro train just minutes later can indeed be a jarring experience.

The subterranean class divide

Smart business clothes are definitely not the most common attire worn by metro passengers, and indeed the archetypal rider of the system is not a well-paid businessperson.

In fact, most well-to-do capitalinos and chilangos choose not to go underground to use the metro, instead preferring to battle the traffic-clogged streets in their own vehicles, in a ride-share, or even in a chauffeured car if they (or their family) has the means to pay a private driver.

Well-off CDMX residents often prefer personal vehicles to the crush of the metro. (Victoria Valtierra Ruvalcaba/Cuartoscuro)

“A significant sector of the middle class and above simply don’t consider” public transport in Mexico City “an option,” VICE News reported in 2016.

Beneath the city — and “beneath me” — is the attitude of many middle and upper class Mexico City residents.

“It’s very different for people to be seen arriving in their own car than having to say that they use the subway or a pesero,” Ivonne Acuña Murillo, a sociologist, told VICE.

In addition to an understandable lack of desire to contort oneself into an uncomfortable position in an overcrowded train car, crime on public transit, including the metro, is also a concern for Mexico City residents. The fear of becoming a victim has only intensified recently due to a series of needle attacks in trains.

Still, the metro remains an indispensable way to get around the capital for millions of daily commuters, who part with 5 pesos (now deposited onto an “integrated mobility card” rather than exchanged for a paper ticket) and put their faith in the system to get them to work, to school, to university, to hospitals and health care clinics, and to countless other places on time.

“The low fare has made it one of the primary modes of transportation for the city’s working class, who use it in combination with other forms of public transportation to reach jobs in distant parts of the metropolis,” states the 2018 academic paper “The Mexico City Metro and its Riders.”

Two clowns pose for a photo in the Mexico City Metro
The metro is an affordable way for workers from a wide spectrum of professions get to their places of work. Pictured: Agustín, a professional clown, on his daily commute. (Peter Davies)

All kinds of workers use the metro to get to work — even clowns such as Agustín, who I met on a recent trip on Line 12. He told me that he uses the metro to get into central Mexico City from the southeastern borough of Tláhuac, where he lives, to entertain children at facilities operated by the DIF family services agency. Given that he asked me for some spare change at the end of our conversation, I concluded that while he may well have a talent to get people rolling in the aisles, he’s not exactly rolling in it himself.

But at just 5 pesos (about US $0.25) a trip, the Mexico City Metro is one of the most affordable mass transit systems in the world, meaning that even the most economically-stressed people can generally join the underground parade and perhaps get themselves to a job where they can work toward improving their financial situation.

According to the 2009 paper “Is the Mexico City Metro an inferior good?” the Mexico City metro “adopted a low fare mechanism with the provision of only one type of ticket regardless of the distance travelled so that the poor peripherally located population could afford the service.”

So is the metro, as the aforesaid article asks, an inferior good for Mexico City residents — an item (or service) that becomes less desirable as the income of consumers increases?

People’s class — or perhaps better put their purchasing power — is, in many cases at least, the determining factor in how they see the metro.

Through research, modeling and other methods, the authors of the “inferior good” paper found that “for the majority of metro users, whose salaries are based on low multiples of the minimum wage and are not potential car owners, the Mexico City metro is perceived as a normal good.”

“However, for middle/high income earners, who can afford to buy a private vehicle when their incomes increase, the Mexico City metro is perceived as an inferior good,” the paper said, providing an academic explanation for the subterranean class divide.

The rider experience, from the first car to the last 

I have been a regular passenger on the Mexico City Metro for over a decade, using the system at almost all times of the day (it closes between midnight and 5 a.m.) to move around the enormous capital.

Yes, on plenty of occasions I have suffered amid a sea of fellow passengers jam-packed into a train car. Yes, I have been a victim of crime — my cell phone was once pickpocketed while riding Line 1 in the morning rush. Yes, I’ve grown frustrated as I stood on the platform and watched crowded train after crowded train go by without any possibility of getting on myself.

A young man even once whispered “fuck you” into my ear for no discernible reason as I alighted a train.

But all in all I’ve had a great experience riding and passing through the stations of the Mexico City Metro. I’ve enjoyed the amazing art, I’ve gotten to where I needed or wanted to get and the train cars in which I’ve traveled have mostly been clean.

I’ve also witnessed some incredible in-carriage performances — including, I should say, some very confronting ones in which mainly shirtless men purposefully harm themselves by throwing themselves onto shards of broken glass in an attempt to shock passengers into handing over a coin. A whole other story.

I am, of course, aware that the experience of riding the metro can be very different for men and for women, who face a greater risk of sexual harassment and abuse.

One initiative aimed at ensuring the safety of female passengers is the designation of “women only” metro cars, which were first introduced in Mexico City in 1970, the year after the system opened.

Transit agents guard the metro cars designated for women and children in Mexico City
Since 2000, Mexico City has provided designated metro cars for women and children. (Cuartoscuro)

The initiative was formalized and expanded in 2000, with access to the first two cars on trains running on several lines limited to women and children under 12 during designated periods of the day. While the success of the initiative has been limited, and sexual harassment and abuse still occur on the metro, women-only metro cars do offer some “respite” for women in Mexico City, if not from the crowds, as journalist Madeleine Wattenbarger wrote in a 2017 essay for Literary Hub.


“The women’s cars are no gentler than the others, or more spacious, or less crowded. If anything, passengers push each other more persistently, unfettered by any fear of indecency that may lead men to defer every so often. Still, I find them sororal and collaborative. When I can’t reach a pole to grab for balance, a woman offers me her shoulder,” Wattenbarger wrote.

“It would be foolish to entertain the notion that the overwhelming female-ness of this space guarantees its safety. Still, I rarely inhabit public spaces that are so predominately female; rarer still do I find spaces designed to be that way. … In the women-only car, though, I experience a respite, however fleeting and illusory, from the anxiety of carrying around my body.”


While a sororal bond might unite female passengers at the front of the train, male metro users sometimes come together in an altogether different way at the back. The final car, or último vagón, of metro trains in Mexico City is known as a gathering place for gay men, a mobile cruising ground where first encounters can quickly turn erotic.

“I had heard rumors about men having sex in Mexico City’s subway system. But nothing prepared me for what I witnessed on my first ride in the último vagón,” wrote author and academic A.W. Strouse in an article published by The Nation last December.

The cover of the book "The Last Car: Cruising in Mexico City"
Photographer David Graham documented metro cruising culture in his book “The Last Car: Cruising in Mexico City.” (Kehrer Verlag)

“… The historian Alonso Hernández Victoria notes that gay men have used Mexico City’s subway for sex, romance, and other encounters since it opened in 1969,” Strouse wrote.

The occasional homoerotic culture of the último vagón was also explored by photographer David Graham in his 2017 book “The Last Car: Cruising in Mexico City.”

Moving people, driving forward the economy 

Given that it moves so many workers on a daily basis, the economic importance of the Mexico City Metro system cannot be overstated.

It is transport system that is “absolutely necessary for the functioning of the urban economy as a whole,” academic Diego Antonio Franco de los Reyes wrote in an article published by Revista Común.

In an article for Nexos, economist Carlos Brown Solà described the metro as “the heart that makes the metropolis beat.”

A historical photo showing Mexico City residents riding the metro
The Mexico City Metro has long been an economic motor for the city, providing residents with an affordable way to get to work. Pictured: Chilangos ride Line 1 of the metro in a historical photo from the 1970s. (Archivo del Transporte CDMX)

That metropolis is Mexico’s economic powerhouse, generating close to 15% of Mexico’s total GDP in 2023. Add in neighboring México state, which includes many municipalities that are part of the Mexico City metropolitan area, and the share of national GDP increases to around 24%.

Without a generally reliable subway system that quickly gets millions of workers to their workplaces on a daily basis, Mexico City’s economic capacity and productivity would no doubt be significant diminished.

Public transit in general “provides mobility options, generates jobs, spurs economic growth and supports public policies regarding energy use, air quality and carbon emissions,” according to the American Public Transport Association.

In Mexico City, the metro system has helped to connect informal sector workers to formal jobs, according to World Bank research economist Román David Zárate.

The construction of Line B of the Mexico City metro, which was completed in 2000 and links central Mexico City to Ecatepec, México state, “sent broad economic ripples through the local housing and labor markets, leading informality rates to fall by as much as seven percent in locations close to the new stations,” said a World Bank article based on research carried out by Zárate and others.

The metro symbol on an entrance into a station
The metro is at the center of a public transport system that ties together the metropolis, driving economic growth and cultural innovation that is felt throughout Mexico. (Andrea Murcia Monsivais/Cuartoscuro)

“When new transport infrastructure such as Bus Rapid Transit or metro lines reduce travel time between locations, new places gain access to jobs and the formal labor market becomes more attractive,” Zárate said.

Around half of all workers in Mexico City work in the informal sector, but without an expansive metro system that provides people with easy access to formal employment hubs, research indicates the percentage would be even higher.

The future of the Mexico City Metro 

There are currently no plans to add new lines to the Mexico City Metro, but the prime public transit system in the Valley of Mexico, and the transport tributaries that flow into it, continue to expand.

Work has begun on the expansion of Line 12, which will connect with the Observatorio station on Line 1 when the project is completed, perhaps in late 2027. Sometime later this year, the new Toluca-Mexico City train line will reach Observatorio, allowing passengers to immediately access the metro system and thus reduce their total travel time between the México state and national capitals.

Also in 2025, Mexico City residents and visitors will be able to travel to the Felipe Ángeles International Airport in México state from the Buenavista Suburban train station, located just outside the historic center and adjacent to the Buenavista metro station.

Like millions of metro passengers, these infrastructure projects have faced delays.

But just as the gusanos naranja (orange worms) — as the metro trains are colloquially known — invariably resume their forward progress after stoppages and reach their final destinations, so too will the transit projects. Have faith that, in time, they will help propel passengers, the economy, the city and even the nation of Mexico as a whole to where they need — and want — to be.

By Mexico News Daily chief staff writer Peter Davies ([email protected])

* This article is the third and final part of a Mexico News Daily series on the Mexico City Metro. Follow the following links to read parts 1 and 2. 

The top 3 challenges facing Mexico’s energy sector: An interview with the Institute of the Americas

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Olmeca refinery Dos Bocas, Tabasco
IOA spoke with Mexico News Daily in advance of a June 5 round table discussion on energy in Mexico, featuring Mexico's Deputy Energy Secretary Jorge Islas Samperio and other speakers. Pictured: The Olmeca Refinery in Dos Bocas, Tabasco. (Gobierno de México)

Setting Mexico on a path toward a sustainable and reliable energy future is a critical challenge for President Claudia Sheinbaum and her administration.

A lot has happened during her first eight months in office, but there is no doubt that much more needs to be done as demand for energy in Mexico — including from the vast industrial sector — continues to grow.

Last October, during the president’s very first month in office, the Mexican Congress approved an energy reform that stipulates that the state-owned Federal Electricity Commission has the constitutional right to generate and supply the majority (54%) of electricity in Mexico.

In addition to firmly supporting the state’s primacy in Mexico’s electricity sector, Sheinbaum — a climate scientist — is committed to advancing the use of renewable energy sources, a key differentiation between her and her political mentor and predecessor Andrés Manuel López Obrador, a champion of fossil fuels.

Balancing her commitment to the clean energy transition while ensuring Mexico’s growing demand for electricity is met will be no easy task for Sheinbaum, who is also intent on achieving energy sovereignty, including self-sufficiency for gasoline, even as the output of the heavily-indebted state oil company Pemex continues to fall.

Yes, the energy challenges for Mexico’s first female president and her administration, as well as the energy sector itself, are indeed many.

Sheinbaum and AMLO wave as they walk through a refinery
Then-President-elect Claudia Sheinbaum accompanies her predecessor López Obrador on a tour of the Miguel Hidalgo Refinery in Tula, Hidalgo. (Claudia Sheinbaum/Cuartoscuro)

One institution that is highly cognizant of these challenges is the San Diego-based non-profit public policy center Institute of the Americas (IOA), which has run an “Energy & Sustainability program” for over 30 years and has long maintained a close interest in energy issues in Mexico.

Mexico News Daily recently spoke about Mexico’s energy challenges and the country’s energy landscape more broadly with IOA President and CEO Richard Kiy, the public policy center’s vice president for energy and sustainability, Jeremy Martin, and non-resident fellow and energy expert Leonardo Beltrán.

In a subsequent email to Mexico News Daily, the University of California-based IOA set out what it see as “three very important challenges” for the energy sector in Mexico, while acknowledging that the full list of challenges is “extensive.”

Mexico needs to provide additional ‘clarity’ to private sector energy companies 

While the aforementioned energy sector reform limits the participation of private and foreign companies in Mexico’s electricity sector, it does not preclude them from playing an important role in ensuring that Mexico can meet demand for power and make the transition to greater use of clean energy sources.

The IOA told Mexico News Daily that “the need for clarity as to the private sector’s involvement in Mexico’s energy sector” is paramount.

While secondary laws supporting the energy reform and setting out the rules for private sector investment passed Congress earlier this year, the IOA believes additional clarity is required.

Mexican flag waving in the wind atop a concrete building with Mexico's Federal Electricity Commission logo on the facade in green letters.
The October energy reform strengthened the role of the Federal Electricity Commission (CFE) and Pemex in the country’s energy sector. (Moisés Pablo/Cuartoscuro)

“The law has set forth very clearly the primacy of the state and state-owned enterprises in the energy sector, but at the same time has not ascribed exclusivity. Indeed, there appears to be areas for engagement by the private sector and those demand further clarity in the regulations and a collaborative approach to the government’s approach to meeting its energy goals,” it said.

Mexico needs to ‘reinvigorate’ investment in clean energy 

The IOA said that “a related challenge is reinvigorating investment in renewable and clean energy.”

“Mexico has some of the world’s most important wind and solar resources, as well as geothermal and hydro, but they have not been sufficiently developed,” the policy center said.

The federal government presented more than 50 new electricity projects earlier this year, including wind and solar ones, and the massive Puerto Peñasco solar park in Sonora is already partially operational.

During the president campaign last year, Sheinbaum pledged to invest more than US $13 billion in a renewables-focused energy plan if she became president.

Indeed, there is plenty of renewable energy potential for Mexico to tap into — as IOA indicated, and the federal government recognizes. The private sector can also play a key role in the energy transition in Mexico, as the federal government has acknowledged, as Latin America’s second-largest economy seeks to do its bit to help mitigate climate change.

Plan México solar energy farm in Puerto Peñasco
The Puerto Peñasco solar farm began operating in 2023. It has the capacity to generate 100,000 megawatts of electricity, enough to power half a million homes. (CFE)

The IOA noted that “the Sheinbaum administration has set a goal for clean energy generation of 45% by 2030.”

“How to reach that goal under the current legal and regulatory framework demands more clarity and explanation from the administration on how private sector can help materialize that vision,” it said.

Another challenge to address: Dependence on US for natural gas

The IOA told Mexico News Daily that “the geopolitics and broader context for U.S.-Mexico relations is particularly important as it relates to energy flows and the massive dependency Mexico has on imported natural gas from the United States.”

During López Obrador’s six-year term as president, Mexico’s imports of natural gas from the United States increased to hit a record high in the first nine months of 2024. The increased reliance on U.S. natural gas imports coincided with a decline in domestic production.

“By some estimates,” the IOA said, “over 70% of the natural gas in Mexico comes from the U.S.”

“During the polar vortex of 2021, when major cuts to gas pipeline exports from Texas were seen, the dependency was painfully obvious,” the public policy center added.

Natural gas shortage triggers major power outage; nearly 5 million affected

Northern Mexico endured major power outages due to the interruption in the natural gas supply in early 2021, allowing López Obrador “to use the days-long supply shock to illustrate the perils of over-reliance on a foreign supplier and provide it as proof that Mexico needed to be self-sufficient in energy,” as the Financial Times reported at the time.

The IOA highlighted a report by The New York Times last month that stated that Mr. Trump’s return to power is now causing many in Mexico to rethink this arrangement [of natural gas dependency], especially as he makes claims on the territory of other countries in the Americas like Canada and Panama.”

The Times’ report also said that “natural gas has eclipsed oil as the country’s largest single fuel source, and is used to produce 60 percent of Mexico’s electricity.”

“An interruption of the flow of gas to Mexico would be beyond chaotic,” W. Schreiner Parker, managing director for Latin America at research firm Rystad Energy, told the Times.

“It’s truly one of the unspoken reasons why Sheinbaum has been so accommodating to Trump,” he said.

One way in which Sheinbaum is seeking to safeguard against any future gas flow interruptions is by increasing storage capacity in Mexico.

LNG plant
The Sheinbaum administration has been quietly increasing Mexico’s natural gas storage capacity. (Depositphotos/Archive)

“The government of Mexico is expediting negotiations with private companies to double the capacity for the strategic storage of natural gas … due to fear that United States President Donald Trump could use the country’s strong dependence on the fuel as a means to pressure [Mexico] in trade negotiations,” Agence France-Presse reported earlier this year citing “three sources with knowledge of the matter.”

While increasing storage is viable, reducing the reliance on U.S. natural gas will be no easy feat given that Mexican production has been declining and Mexico’s demand for electricity is set to continue to grow.

‘Sufficient, affordable and sustainable energy supplies’ crucial to attracting new investment 

To discuss these energy challenges and other Mexican energy sector issues, the IOA is holding an event focused on electricity and natural gas in Mexico at the Hotel Hyatt Regency in Mexico City next Thursday June 5. Energy Minister Luz Elena González is among the scheduled speakers.

The IOA said that the staging of its event is timely as “the changes in the energy sector are very fresh and require deeper levels of understanding.”

It is a key moment for implementation and consolidating the final legal rules and norms,” the public policy center said.

The IOA also noted that the energy sector will play a key role in helping the government reach the goals it has set out in its ambitious Plan México economic initiative, among them an aim to significantly increase electricity generation by 2030.

“Further, there’s been a great deal of attention and focus on nearshoring and how Mexico is positioned to capture important manufacturing and industrialization investments. But none of that is possible without sufficient, affordable and sustainable energy supplies,” it said.

More information about the upcoming IOA “roundtable” in Mexico City — which members of the public can register to attend — is available on the event website.

Mexico News Daily 

Aeroméxico strike could disrupt flights starting Sunday

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Passengers wait in line at an Aeromexico check in counter
The flight attendants union is demanding a salary increase to bring wages back up to pre-pandemic levels, adjusted for inflation. (Daniel Augusto/Cuartoscuro)

A flight attendant strike could disrupt Aeroméxico operations starting Sunday unless a new salary agreement is reached in the coming days, according to the Mexican Aviation Flight Attendants Union (ASSA).

ASSA reported that meetings were held with the Federal Center for Conciliation and Labor Registration on Monday and Tuesday to address the salary issue, but no agreement has yet been reached.

A room full of people raises their hands at a meeting
Flight attendants vote on a proposed agreement with Aeroméxico at an ASSA union meeting last week. (ASSA/Facebook)

Flight attendants at Aeroméxico, Mexico’s second-largest airline, said salaries for both senior and junior staff have not kept up with inflation in recent years.

Flight attendants present at the May 21 Extraordinary General Assembly rejected Aeroméxico’s proposed salary increase of 2.9% for senior workers and 3.25% for junior employees.

If an agreement is not reached by Sunday, staff are expected to strike starting on the first minute of June 1. This coincides with the voting date for Mexico’s judicial elections.

Flight attendants previously planned a strike during the presidential elections on June 2, 2024. However, no strike action was taken as Aeroméxico agreed upon a 4.6% salary increase.

The company’s flight staff are requesting a salary increase of at least 4.13%, based on annual inflation from May 2024 to 2025.

The aim is to “recover the accumulated purchasing power deficit from 2020 to 2024, equivalent to 12.12% compared to a cumulative inflation of 29.89%,” according to the ASSA.

“The flight attendants’ struggle goes beyond achieving a raise; the goal is to recover the wage gap in relation to the increase in the cost of living, as well as the outdated increase in the minimum wage,” the union said.

The ASSA reported that 60% of workers (1,860 employees) are classified as junior staff  and earn just 1.8 times the minimum wage.

Aeroméxico has recently announced a suite of new flights in an effort to grow its presence in the United States.
Aeroméxico cut wages in the face of a steep decline in earnings during the coronavirus pandemic. (Erik Si/Unsplash)

This “prevents them from accessing housing, obtaining credit, or having enough payroll to pay for life insurance … among other essential needs,” according to the union.

In a last-ditch attempt to resolve the dispute, another Extraordinary General Assembly is planned for 3 p.m. on Friday.

Pay cuts and bankruptcy rebound

Like many airlines, Aeroméxico suffered from severe revenue losses during the COVID-19 pandemic. This led the airline to file for bankruptcy protection in 2020 and to delist from the New York Stock Exchange.

During the pandemic, Aeroméxico announced widespread pay cuts. A salary reduction agreement was signed with pilots and other staff during this time as the firm attempted to weather the storm.

Aeromexico came out of the bankruptcy process in 2022 and announced plans in March 2023 to relist on the U.S. exchange. However, in February, Aeroméxico’s CEO Andrés Conesa said market conditions were not ideal for the company to list in New York.

The carrier will list “as soon as market conditions allow,” Conesa told journalists. “We aren’t in a rush,” Conesa said, adding the initial public offering (IPO) would come “whenever shareholders decide to sell.”

With reports from El Financiero, El Economista, El País and Reuters

Despite regulatory complexity, investment in Mexico remains high

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Office of the Mexico tax authority (SAT)
Unclear standards and lack of digitalization in agencies like the Mexican tax authority (SAT) make doing business in Mexico more difficult than necessary, a new ranking shows. (Daniel Augusto/Cuartoscuro)

Mexico ranks as the third most challenging country in the world to do business, according to the Global Business Complexity Index (GBCI) 2025, an annual ranking that evaluates the regulatory complexity of doing business in 79 countries that collectively account for 94% of global GDP.

The index, published by accounting group TMF Group, saw Mexico move up one position this year after it came in No. 4 last year. This consolidates its position as one of the most complex economies in terms of regulation, taxation, and administration.

Yet, this has not discouraged investments in the country.

In the report, TMF Group notes that, despite the volatile context, interest in Mexico remains undiminished. Many companies are not only maintaining their investment plans but are also investing in the long term.

“What we see most in our business is that investment continues unabated. It’s coming from the United States, Europe, and China, with companies determined to establish themselves here,” Dunia Salomón, managing director for TMF Group in Mexico, told Expansión magazine.

She said that the country attracts investment because of its strategic geographic location and its network of trade agreements, key to nearshoring. Despite the uncertain environment and recent reforms in labor and judicial matters, Mexico remains open to the public.

“It has challenges, but it hasn’t stopped being competitive,” adds Dunia Salomón.

The increased complexity of doing business in Mexico is due to multiple factors, Salomón said. One is that  there is also a lack of uniformity in the application of regulations: one office may require five requirements, while another may require six for the same permit. Digitalization is advancing, but it has not yet completely replaced in-person procedures. This creates bottlenecks, especially after the pandemic, when demand increased and operational capacity had not fully recovered.

Mexico also lost ground compared to other countries on the ranking, which made faster progress in simplifying their regulatory processes.

Meanwhile, TMF Group notes that the main challenge isn’t the complexity itself, but rather the uncertainty surrounding some processes and the ambiguous interpretation of certain rules.

Salomón thinks that for investors, “the key is to have a clear action plan and surround themselves with experts who understand the local environment.”

“The country is attractive, but it requires preparation. It’s not enough to apply the same formula as in other jurisdictions. Here, you need local advice, patience, and knowledge. That’s the difference between successful expansion and failure,” says Salomón.

As part of Plan Mexico and to boost investment, the government created the National Digital Investment Window, which provides guidance and support for foreign companies. TMF’s general director in Mexico said that the results of this initiative would be reflected between 2026 and 2027. By then, Mexico should show progress in simplifying procedures and reducing administrative barriers. If it manages to implement these measures, it could move down the ranking of the complexity of doing business.

With reports from Expansión

What’s on in Puerto Vallarta in June?

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Bird's eye view of shoreline in Puerto Vallarta
June is hot in Puerto Vallarta, but that doesn't mean the city's events calendar slows down. (The Cosmonaut /CC BY-SA 2.5 CA)

The heat persists into June in Puerto Vallarta, but so too does the city’s calendar of events. From sacred art rituals to DJ-fueled beach fiestas and high-energy dance festivals, June is packed with events that celebrate the sea, creativity, community and culture. Whether you’re here to dance, downward dog, or celebrate summer on the beach, here’s your go-to guide for what’s happening this month in Puerto Vallarta.

Mexican Navy Day Celebration in Yelapa

A guide to Yelapa, Jalisco
Yelapa, Jalisco offers a quiet, authentic beach escape within driving distance of bustling Puerto Vallarta. (Vallarta Lifestyles)

Yelapa’s beachside community throws one of the most joyful tributes to the Mexican Navy you’ll find on the Pacific coast. This full-day fiesta includes live music, DJs, local food and drinks and all the tight-knit community energy the fishing village is known for.

Date: June 1
Location: Playa Yelapa, Yelapa
Cost: Free

Greenpeace Giant Kite Festival

A kite festival
(Thes Media)

Send a message to the skies at this colorful free event from Greenpeace Mexico. Fly enormous kites shaped like whales, rays and sea turtles over Playa del Holi to raise awareness about marine conservation. A family-friendly way to support the oceans.

Date: June 4
Location: Playa del Holi, next to La Isla Shopping Village
Cost: Free

“Recalculando” by Odin Dupeyron

TRAILER - #Recalculando

Theater fans won’t want to miss actor-director Odin Dupeyron’s monologue “Recalculando,” a thought-provoking and emotional blend of comedy and philosophy. Presented entirely in Spanish, this one-man show offers insights into life’s detours and existential curveballs.

Date: June 5 at 8 p.m.
Location: Teatro Vallarta, Calle Uruguay 184, Colonia 5 de Diciembre
Cost: Tickets start at 750 pesos

Free yoga class at Vallarta Gay+ Community Center

 

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Start your Saturday with breath, movement and connection. This inclusive and welcoming yoga class at Vallarta Gay+ Community Center is open to all levels and focuses on mindful movement and alignment. Mats are provided and donations are welcome.

Date: June 7, 10 a.m. to 12 p.m.
Location: Vallarta Gay+ Community Center, Morelos 101, Local 3B, Centro
Cost: Free

Collagraphic printmaking workshop

(Joaquín Bolívar Thomas)

Cuban artist Joaquin Bolivar Thomas leads this immersive, hands-on, three-day workshop in collagraphic printmaking at Art VallARTa. Learn matrix building and inking techniques and take home your own original prints and printing plate.

Date: June 9 through 11, 11 a.m. to 3 p.m.
Location: Art VallARTa, Pilitas 213, Zona Romántica
Cost: 2000 pesos

Puerto Vallarta Bachata Festival

 

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Get ready to dance! This high-energy bachata festival brings some of the world’s top dancers and DJs to the Marival Emotions Resort in Nuevo Vallarta. Enjoy workshops, social dancing and nonstop music at one of the year’s most anticipated Latin dance events.

Date: June 13 through 15
Location: Marival Emotions Resort & Suites, Nuevo Vallarta
Cost: Tickets start at US $120

Awakening: A Living Canvas of Spirit and Snake

A summer solstice ritual blending performance art and sacred ceremony. Artist Gloria Fiona surrenders her body and voice to collaborate with a boa constrictor in a live painting ritual. Live-streamed globally, with limited in-person access by request.

Date: June 21 at 10 a.m.
Location: UMA Reptilario Cipactli, CUCosta
Cost: Free to stream. Contact +52 322-350-6040 via WhatsApp to reserve your in-person spot.

Interludes PV 246 Challenge Race

Rise early for the fifth annual PV 246 Challenge, a three-kilometer race along Puerto Vallarta’s scenic Malecón. With categories for all ages and fitness levels, it’s a great way to kick off your Sunday and celebrate the city’s active community spirit.

Date: June 22 at 7 a.m.
Location: Malecón, Downtown Puerto Vallarta
Cost: 450 pesos (includes shirt, bib, medal and hydration)

Meagan Drillinger is a New York native who has spent the past 15 years traveling around and writing about Mexico. While she’s on the road for assignments most of the time, Puerto Vallarta is her home base. Follow her travels on Instagram at @drillinjourneys or through her blog at drillinjourneys.com.

Off the beaten track in Oaxaca city

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Jalatlaco, Oaxaca
Come for the culture, stay for the hidden gems, as Jalatlaco and Xochimilco (not that one) prove there's more to Oaxaca than mole and mezcal. (magicaltowns.mx)

I’ve just gotten back from my third trip to Oaxaca city. They say the third time’s the charm, and now I know what they mean. Until now, I just didn’t understand the hype. I liked Oaxaca, sure, but it seemed like everyone I knew absolutely loved it.

Oaxaca is pretty. It’s clean. It’s charming. It just never swept me off my feet.

This time was different. Had I known before that all I needed to do was wander beyond the Historic Center, I would have meandered into Xochimilco and Jalatlaco so I could discover the magic that everyone else saw right away. It was in these two neighborhoods, on the outskirts of the lively downtown, that I fell in love with Oaxaca. Was it their colorful murals? The unexpected juice bars? Or was it the common thread I later uncovered that tied the two zones together? After all, Xochimilco and Jalatlaco are the two oldest neighborhoods in Oaxaca City, each with their own personality, history and appeal.

Xochimilco: Quiet streets meet Zapotec heritage

Xochimilco, Oaxaca City
Xochimilco isn’t the wildest region of Oaxaca city, but it might just be the most effortlessly charming. (Carlos Bustamante)

I stumbled upon Xochimilco in an innocent, yet desperate, attempt to find a salad. Oaxaca is widely recognized for its culinary prowess, but after a few days of mole and mezcal, the body starts craving vitamins.

Nearing my destination, I noticed the roads getting windier, the facades quirkier and the views more dramatic. Murals of hummingbirds and historical figures sprouted from cobblestone streets while bright bougainvillea cascaded down from the rooftops. What I noticed above all, however, was how incredibly quiet it was: just me, the birds and an occasional lonesome tourist.

Xochimilco is recognized as one of Oaxaca city’s oldest neighborhoods, or barrios, as they’re called herein Oaxaca. Like Jalatlaco, it was a Zapotec settlement prior to Spanish colonization. Unlike other neighborhoods that were swallowed by colonial customs, Xochimilco has maintained its distinct Indigenous cultural and religious traditions to this day. Which raises the question: why does this neighborhood, separated from the nation’s capital by 300 miles and several mountain chains, have the same name as Xochimilco in Mexico City? That’s because the Mexica (Aztecs) invaded modern-day Oaxaca in 1486 and brought with them Xochimilcan soldiers who, naturally, named the settlement after their own hometown.

As part of Oaxaca city’s Historic Center, Xochimilco is protected under federal law as a historic monument zone. Most of these monuments were built by the Spanish, including the striking 18th-century San Felipe Aqueduct and the 16th-century Parroquia de Santo Tomás. There is also the bustling Mercado Sánchez Pascuas, where vendors sell traditional Oaxacan foods, and Calle Rufino Tamayo, known for its bold and colorful street art. Plazuela de la Cruz de Piedra is the barrio’s public square, and there is no shortage of cafes, restaurants, galleries and artisan workshops that offer visitors a peek into the daily life of a Xochimilco resident. 

Where to eat in Xochimilco: Ancestral Cocina Tradicional, celebrated for elevated Oaxacan cuisine with a twist in a lush garden setting and El Empedrado, for a cozy, casual environment that includes rooftop seating and live music.

Jalatlaco: Colonial history meets contemporary art

Jalatlaco, Oaxaca
Jalatlaco is gradually gaining the recognition it deserves, and for good reason too. (Bucketlist Bri)

I discovered Jalatlaco more intentionally. Feeling like I had exhausted what there was to see in the Historic Center, I asked Google to recommend some hidden gems. Jalatalco topped the list, and popping over I could feel the difference immediately. Named Oaxaca city’s first Barrio Mágico in 2023, the neighborhood, livelier than Xochimilco but more chill than the area around the Zócalo, felt truly local. I passed an artist painting a giant mural of corn, each kernel a different shade of gold and purple. I walked behind an older gentleman in a cowboy hat on his way to lunch. I even passed by NN Gallery, a contemporary art space showcasing regional talent.

Above me were rooftop restaurants, with groups of Oaxacan 20-somethings laughing over pizza. There was artwork at every corner, and when I returned later that night for dinner, the streets were lined with string lights.

Like Xochimilco, Jalatalco was historically inhabited by indigenous Zapotec communities and was occupied by Mexica soldiers in 1486. During colonization, the Spanish under Francisco de Orozco converted the old village into a Spanish enclave. That’s why the most recognized historical attraction is colonial: the Temple of San Matías Jalatlaco, which has origins tracing back to the early 17th century, can be easily distinguished by its green-hued stone facade. 

In the late 19th and early 20th centuries, the leather tanning industry flourished in Jalatlaco due to its proximity to the Jalatlaco River. With the rise of synthetic materials and the extinction of the river, the craft disappeared here but still remains a key part of the barrio’s history. The Jalatlaco Entrance Arch is a fun photo-op and guides you directly to Calle Aldama, a picturesque street that embodies the artistic essence of the neighborhood.

Where to eat in Jalatlaco: Asador Bacanora Oaxaca, a trendy outdoor dining experience with a Michelin-recommended menu creatively highlighting both Oaxacan and Mexican dishes and Santa Hierba Jalatlaco for a tropical brunch vibe with rooftop seating, featuring a menu that caters to a variety of dietary preferences.

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.

Sheinbaum addresses case of murdered norteña band: Thursday’s mañanera recapped

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reporters raise their hands at Sheinbaum's morning press conference
Sheinbaum discussed the tragic murders of a Tamaulipas music group, electronic cigarette regulations and cycling star Isaac del Toro on Thursday. (Presidencia)

At her Thursday morning press conference, President Claudia Sheinbaum fielded a question on some distressing news out of Tamaulipas: five bodies were found in Reynosa four days after five members of a norteña band went missing in the northern border city.

During her penultimate presser of the week, Sheinbaum also discussed the constitutional ban on vaping devices and the success of a Mexican in a prestigious bicycle race in Europe.

Norteña band members found dead in Reynosa 

A reporter noted that five bodies believed to be the members of the norteña band Grupo Fugitivo had been found in Reynosa, Tamaulipas. The musicians disappeared on Sunday after playing a gig in the northern border city.

Asked whether the case had been discussed in daily security cabinet meetings, Sheinbaum only said that federal authorities were working very closely with the Tamaulipas government.

The Tamaulipas Attorney General’s Office confirmed later on Thursday that the five bodies found in Reynosa were those of the Grupo Fugitivo members, young men aged 20 to 40. The charred remains of the men were found on a property in the Aquiles Serdán neighborhood of the border city.

Attorney General Irving Barrios Mojica said that nine people had been arrested in connection with the disappearance and murder of the musicians. The suspects are allegedly associated with the “Los Metros” cell of the Gulf Cartel.

Sheinbaum: Vapes are banned by the Constitution, but laws setting out penalties still required  

A reporter noted that this Friday is “World Vape Day” and asked the president whether her government had considered “doing something” to restrict children’s access to vapes, also known as electronic cigarettes.

They are “already prohibited in the Constitution,” said Sheinbaum, referring to a reform approved by Congress in late 2024.

“In the next extraordinary period of Congress one of the laws we hope is approved is the Health Law. The Health Law contains the specifications on the penalties [for selling vaping devices] because the regulatory part [of the reform] is missing,” she said.

The draft law sets out sanctions for bringing vapes into the country and selling them, Sheinbaum said.

A variety of vapes or electronic cigarettes
Though vapes are illegal in Mexico, the lack of specific regulations means that black market sales continue relatively unfettered. (Antonin Fels/Unsplash)

“What’s missing is the secondary regulation … and … [legislation determining] the institutions that have to ensure that [vapes] aren’t sold. That will be approved in the next extraordinary period of Congress, which we expect will be in the middle of June,” she said.

Sheinbaum urges Mexicans to cheer on cyclist Isaac del Toro

Isaac del Toro, a 21-year-old from Ensenada, Baja California, continues to lead the Giro d’Italia bicycle race after 18 stages.

Asked about del Toro’s victory in the 17th stage of the race, Sheinbaum said:

“We’re going to cheer for him from here, let’s all cheer him on.”

After noting that del Toro is an ensenadense (native of Ensenada), Sheinbaum conveyed her government’s “affection, recognition and the best vibes” to the young cycling star.

By Mexico News Daily chief staff writer Peter Davies ([email protected])

Tulum begins restoration of key coastal thoroughfare

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An aerial view of the Tulum coastline
The Tulum road improvement project supports the town’s growth as a top tourist destination. (Spencer Watson/Unsplash)

A long-overdue road improvement project in the Caribbean resort town of Tulum is “progressing steadily,” according to Mayor Diego Castañon.

Castañon said the completed road will improve connectivity and safety in one of the busiest tourist and service areas in the municipality. He offered a progress report in a video posted to social media on May 23.

The first stage of the project will improve 4,200 square meters of Cobá Sur Avenue and will require an 8.4 million-peso (US $435,000) investment, according to Tulum’s Public Works director Christian Moguel.

Coba Sur Avenue — also known as Avenida Okoót — is an important access road to hotels, archaeological sites and beaches, but it has needed maintenance for years, with residents and business owners joining forces to demand repairs, according to Riviera Maya News.

Repairs on the coastal thoroughfare, which began on May 19, will “provide a decent, functional roadway befitting the grandeur of our municipality,” Castañon said.

Improvements along a key 3-kilometer stretch of the road, include storm drainage, new signage and asphalt resurfacing, which “will change the way we enter, leave and live in our municipality,” the mayor said in a separate May 23 social media post

The project, which will directly benefit 47,000 people, also features improvements to pedestrian and bicycle lanes, according to the mayor.

Castañon called on residents to be patient, adding that “what’s coming will be much better, and it will be worth the wait.”

The repairs are being carried out in stages to minimize disruption to daily traffic.

The Tulum archaeological site is one of the best-preserved coastal Maya sites, and its short distance from Cancún and the surrounding Riviera Maya has made it a popular attraction in the Yucatán Península.

The resort town in the state of Quintana Roo is renowned for some of Mexico’s finest beaches.

With reports from Riviera Maya News and 24 horas Quintana Roo

US trade court blocks Trump’s ‘fentanyl trafficking’ tariffs against Mexico

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Angry Trump
Trump's "fentanyl trafficking" and reciprocal tariffs remain in place for the time being after his administration quickly appealed the ruling. (Gage Skidmore CC BY 2.0)

Mexico on Wednesday appeared poised to get some relief from U.S. tariffs thanks to a decision by a U.S. federal court that blocked President Donald Trump from using an emergency-powers law to impose duties on imports.

However, there is no certainty that the decision will force the Trump administration to withdraw some of its tariffs, as an appeals court agreed on Thursday to allow many of the U.S. president’s sweeping duties to remain in place.

Entrance sign for the United States Court of International Trade in Manhattan, New York
The U.S. Court of International Trade ruled that Trump exceeded his authority in implementing two rounds of tariffs earlier this year. (Ken Lund CC BY-SA 2.0)

The appeal court’s decision came after the United States Court of International Trade ruled on Wednesday that Trump exceeded his authority in using the International Emergency Economic Powers Act (IEEPA) to impose tariffs on imports from most countries around the world.

The U.S. president used the IEEPA, a federal law enacted in 1977, to impose his so-called “reciprocal tariffs” on imports from many countries (but not Mexico), and to implement duties on goods from Mexico, Canada and China to pressure those nations to do more to combat fentanyl trafficking.

The United States Court of International Trade said in a 49-page written ruling that the fentanyl “Trafficking Tariffs fail because they do not deal with the threats set forth” in the orders to implement them.

Trump imposed 25% tariffs on all imports from Mexico and most imports from Canada on March 4 due to what the White House said was a failure by the two countries to take adequate action against “the influx of lethal drugs” to the U.S.

Two days later, he suspended the tariffs on Mexican and Canadian goods covered by the USMCA.

Products that comply with the three-way trade pact can still enter the U.S. tariff-free, but non-USMCA-compliant goods continue to face the 25% duty. Economy Minister Marcelo Ebrard said in March that between 85% and 90% of Mexican goods exported to the United States wouldn’t be subject to tariffs as a result of Trump’s decision to suspend tariffs on imports covered by the USMCA.

The United States Court of International Trade gave the U.S. government 10 days to complete the bureaucratic process to halt all IEEPA tariffs that are in effect, including the 25% duty on non-USMCA-compliant Mexican products.

The White House promptly filed an appeal with the Federal Circuit Court of Appeals, and that court on Thursday granted the request by the U.S. government for a stay on the trade court’s ruling.

If the U.S. government fails to win a definitive revocation of the trade court’s ruling, Trump could use other laws to impose sweeping tariffs on imports from its trading partners.

Trump’s protectionist policies have created significant global uncertainty in recent months, not least because the U.S. president has made numerous changes to the tariffs he has imposed. That uncertainty will persist until a definitive decision on the legality of the IEEPA tariffs is made.

Shipping containers a the Manzanillo port
USMCA-compliant goods exported from Mexico to the U.S. are still subject to 25% tariffs while the appeal works its way through the U.S. court system. (Cuartoscuro)

At her Friday morning press conference, President Claudia Sheinbaum was cautious in her remarks about the trade court’s decision, saying that the Economy Ministry would conduct an analysis of the “reach” of the ruling as it will affect tariffs on Mexican goods. She noted that the U.S. government was challenging the ruling.

“We’re going to wait,” Sheinbaum said.

The New York-based trade court’s ruling came in response to lawsuits filed by various businesses and 12 U.S. states.

Trade court ruling doesn’t affect US steel, aluminum and auto tariffs 

While Mexico will get relief from the 25% IEEPA tariffs currently in effect for non-USMCA-compliant Mexican goods if the U.S. government’s appeal is ultimately unsuccessful and it is forced to halt those duties, current U.S. tariffs on foreign steel, aluminum, vehicles and auto parts are not affected by the trade court ruling on Wednesday.

Those tariffs were imposed for national security reasons in accordance with Section 232 of the United States Trade Expansion Act.

Mexican steel, aluminum and hundreds of products made with those metals currently face 25% tariffs when exported to the United States. United States content in vehicles assembled in Mexico is exempt from the 25% tariff the U.S. imposed in early April, lowering the tariff on Mexican cars to 15% on average, according to Ebrard.

An aerial view of dozens of rows of new cars in a storage lot, ready for export
Tariffs on aluminum, steel and cars were not affected by Wednesday’s ruling. (Shutterstock)

Mexican auto parts that comply with the USMCA are exempt from the 25% U.S. tariff on parts that took effect earlier this month.

Mexico is currently trying to negotiate better trading terms with the United States — i.e. the removal or lowering of the tariffs currently in place.

The USMCA, which is supposed to guarantee free trade of most goods between Mexico, the United States and Canada, is scheduled for review in 2026, but Ebrard believes formal talks will commence in late 2025.

Mexico News Daily 

Chedraui grocery chain announces 3.5B peso expansion in Tamaulipas

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Front shot of Chedraui on Isla Mujeres
Born in Xalapa in 1920, Chedraui is Mexico's largest locally-owned supermarket chain. (Larry D. Moore / CC BY 4.0)

Mexican grocery store chain Chedraui has announced a 3.5 billion-peso (US $181 million) expansion plan in the northern state of Tamaulipas.

Chedraui said it plans to open 13 new stores over the next five years. Tamaulipas Governor Américo Villarreal welcomed the announcement, confirming in a social media post that the expansion is expected to create more than 6,400 jobs.

During a meeting at the governor’s mansion with Chedraui president Alfredo Chedraui, Villarreal said the investment will strengthen “the economic and social development” of Tamaulipas.

“This is the result of continuing to build trust, development and social well-being with a humanistic vision,” the governor said, reiterating his commitment to facilitating investment procedures that provide certainty to the private sector.

“We hope this is just the first of many meetings,” Villarreal said to Chedraui and the company’s expansion manager Eduardo Durán. “We’ll see you again at the inauguration of the first new store.”

Chedraui currently operates 37 stores in Tamaulipas and plans to open the first two new stores by the end of this year in the Gulf Coast cities of Tampico and Altamira with an investment of 1.2 million pesos (US $62,000). These stores are expected to generate more than 1,160 jobs, authorities said.

Other cities where the company plans to open stores include Matamoros, Nuevo Laredo, Ciudad Victoria, Reynosa, Ciudad Mante and Valle Hermoso. Altamira and Tampico will get additional new stores before the expansion project is complete.

According to American business research company Dun & Bradstreet Hoover’s, Chedraui is Mexico’s third-largest retailer, after Walmart and Soriana. 

The Veracruz-based supermarket giant sells groceries, apparel and non-perishable items in 462 stores across Mexico, while also operating stores in the U.S. states of California, Arizona, New Mexico, Texas and Nevada.

The grocery store chain reported net sales of 74.4 billion pesos (US $3.8 billion) during the first quarter of this year, a 14.8% increase over the same period in 2024, according to Retailers Magazine. Sales in Mexico grew by 3.7%, boosted by the company’s “Mi Chedraui” loyalty program, which boasts 13.3 million registered clients.

Supermarket chain plans to open more of these.
Chedraui’s investment will create more than 6,400 jobs in Tamaulipas over five years, officials predicted. (Chedraui)

Chedraui opened 15 new stores during the first quarter of 2025, including 13 “Supercitos” (small markets in dense neighborhoods), and digital sales accounted for 3.4% of all domestic sales. 

The company plans to open 130 new Supercitos this year, in addition to five Chedraui supermarkets and five Super Chedraui stores.

With reports from El Economista, El Universal and Milenio