Mexico Boosts Trade, Energy Plans Amid Global Uncertainty

At the CELAC 2025 summit, President Sheinbaum advocated for diversifying Mexico's trade partnerships, highlighting a potential economic agreement with Brazil. Meanwhile, Mexico is advancing energy self-sufficiency with 29,000MW of new capacity and major upgrades to its power grid. 

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Mexico Seeks Stronger Economic Ties With CELAC Members

At the 2025 CELAC Meeting, President Sheinbaum highlighted her proposal to diversify Mexico's economic markets beyond its strong ties with the United States, aiming to foster bilateral agreements, particularly with Brazil in the automotive and pharmaceutical sectors. She emphasized the importance of economic complementarities with other CELAC members. Additionally, Sheinbaum discussed a potential railway project to extend Mexico's Mayan and Interoceanic Corridor to Guatemala, aiming to promote regional development along the border.

Security Assessment / Huachicol

In the first six months of President Sheinbaum's administration, a 14% decrease in the daily average of intentional homicides was reported, with significant reductions in several states, including Guanajuato and Sinaloa. Minister of Security Omar García Harfuch highlighted actions taken, such as the detention of over 17,000 individuals involved in violence and large drug seizures. Additionally, President Sheinbaum emphasized Mexico's strong position within North America, particularly regarding the 0% tariff on auto parts despite the US imposing a 25% tariff on light vehicles.

Energy Self-Sufficiency / Disappearances

The Mexican government is working to increase the country’s energy self-sufficiency by adding 29,000MW of new capacity, with CFE ensuring system reliability and private projects supporting the energy transition. The plan includes 158 transmission projects and the construction or expansion of 97 substations by 2030. Additionally, the Mayan Train has seen promising tourism results, with early packages showing strong demand, and the Ministry of Tourism has collaborated with states to enhance the train’s appeal.

Mexico Sorts Out US Tariffs

President Sheinbaum confirmed that Mexico will not face special tariffs, emphasizing the country's strong approach to dialogue with the United States and its geographical advantage. Discussions are ongoing regarding steel, aluminum, and automotive tariffs, with the government aiming to secure more favorable global conditions for these industries. Mexico remains focused on protecting its automotive sector, with a 25% tariff on non-US manufactured vehicle parts, while auto parts adhering to USMCA rules will remain tariff-free.

Global Markets Tumble as US Tariffs Stir Economic Fears

Global markets experienced their worst losses in over a decade due to escalating concerns over US tariffs, with major Asian stocks dropping 7.9% and the S&P 500 losing over 6%, wiping out more than US$5 trillion in market value. China’s retaliatory 34% tariff on US imports and President Trump’s trade policies have sparked fears of a global recession, with JPMorgan increasing the likelihood of a US recession to 60% in 2025. Investors shifted to safe-haven assets as the US dollar fell sharply, reflecting growing concerns about the long-term impact of the tariffs on global trade and economic stability