Mexico Navigates US-China Trade, Reinforces National Security

As Trump pushes for tariffs on Chinese imports, Mexican officials are weighing economic ties with both nations. Additionally, a new reform has been introduced, aiming to impose harsher penalties for arms trafficking and strengthen the country’s sovereignty against foreign interference.

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United States Pressures Mexico to Impose Tariffs on China

The Trump administration has urged Mexico to impose tariffs on Chinese imports as part of ongoing negotiations to prevent the United States from imposing duties on Mexican goods starting March 4. While Mexico did not commit to specific actions regarding China, both parties agreed to establish a bilateral working group to continue discussing trade and tariff policies.

New Constitutional Reform Responds to US Cartel Designations

Claudia Sheinbaum has proposed a constitutional reform aimed at reinforcing national sovereignty, following the United States' decision to classify several Mexican cartels as terrorist organizations. Sheinbaum announced that she will submit a proposal to Congress to amend Art. 19 and 40 of the Mexican Constitution. The reform seeks to legally fortify national sovereignty and impose stricter penalties on individuals involved in the trafficking of weapons into Mexican territory.

Mexico's Economy Grows 1.2% in 2024

Mexico's economy grew by 1.2% in 2024 INEGI. The growth rate was lower than the 1.3% projected by INEGI 20 days ago and fell short of expectations from financial institutions like Citi, which had forecasted 1.5% growth. International organizations, including the International Monetary Fund (IMF) and the World Bank, had projected a higher growth rate of 1.8% and 1.7%, respectively.

OECD Growth Slows in 4Q24

The OECD GDP slowed to a growth rate of 0.3% between October and December 2024, a two-tenths decrease compared to 3Q24. Mexico was among the worst performers during the final quarter of the year. Economic activity among G7 economies was also moderated, slowing to 0.4%. This trend reflected contractions in France, with -0.1% compared to 0.4% after the boost from the Paris Olympics faded, and in Germany, with -0.2% compared to 0.1% due to poor export performance.

National Housing Program for Well-Being

On Feb. 10, the Mexican government announced that, as part of the National Housing for Well-Being Program, the construction of 52,345 homes will begin across 25 states between February and April. This initiative aims to provide dignified housing while ensuring transparency and accountability in housing funds.