Mexico’s 2025 Milestones and 2026 Outlook

2025 saw Mexico launch Plan México, hold its first judicial elections, and navigate challenges with the United States. Mexico is projected to grow 1.3% in 2026, but Goldman Sachs warns the country may lag the regional average. In addition, Sheinbaum’s electoral reform, informed by nationwide consultations, targets legislative approval by April ahead of the 2027 elections. 

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2025 in Review: Plan México, US Relations, New Tariffs

2025 was a year of ambitious economic initiatives and international pressures for Mexico, marked by the launch of Plan México, the country’s first judicial elections, and ongoing trade and diplomatic challenges with the United States.

Mexico’s 2026 GDP Expected to Grow 1.3% Amid Challenges

Mexico’s economic outlook for 2026 shows modest improvement, although structural and external challenges continue to constrain growth. Estimates from global investment bank Goldman Sachs indicate that the country’s GDP is expected to expand by 1.3% by the end of the year.

Sheinbaum Prepares Electoral Reform to Reshape Political System

President Claudia Sheinbaum is preparing to submit an electoral reform initiative to Congress that aims to adjust the structure and financing of Mexico’s political system while incorporating feedback from nationwide public consultations. The proposed changes have already sparked debate among opposition parties and electoral experts, with discussions focusing on their potential effects on party dynamics, representation, and governance.

Canada Warns of Hurdles in Mexico Ahead of USMCA Review

Canada’s leading business voices stress that Mexico has become indispensable to North American competitiveness, but regulatory challenges in energy, critical minerals, and agriculture could complicate the ongoing USMCA review.

United States

United States Announces 25% Tariff on Countries Trading With Iran

The United States will impose a 25% tariff on goods from countries that maintain commercial ties with Iran, President Donald Trump announced, as unrest escalates inside the country and Washington weighs its next steps.

US Demands Venezuela to Cut Ties With China, Russia, Iran, Cuba

US President Donald Trump told Venezuela’s interim leader, Delcy Rodríguez, that her government must partner exclusively with the United States. According to ABC News, Washington is also demanding that Venezuela significantly scale back its relationships with China, Russia, Iran, and Cuba.

Senate Seeks to Limit Donald Trump’s Military Actions

The US Senate is scheduled to vote on a resolution that would prevent President Donald Trump from initiating new military operations against Venezuela without explicit approval from Congress. The vote follows the recent capture of Venezuelan President Nicolás Maduro by US forces. Senators are now considering the latest in a string of war powers proposals introduced after the administration increased military pressure on Venezuela, including attacks on vessels off its coast last September.