Mixed Signals: Economic Slowdown, Record FDI, Trump’s Tariffs

The Mexican economy slowed down in June, growing just 0.2% month-on-month. Mexico received US$45.3 billion in FDI in 2024, a 48% rise year-on-year and its highest since 2013. In addition, Trump unveiled a trade deal with Japan that includes 15% reciprocal tariffs, a US$550 billion investment pledge, and reduced auto duties.

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National

Mexican Economy Slows Down in June Amid Uncertain Outlook

INEGI data reveals that the Mexican economy continued its monthly slowdown in June, with the Economic Activity Nowcast Indicator (IOAE) registering a modest 0.2% growth compared to the previous month. This marks the second consecutive month of deceleration, following 0.5% growth in April and 0.3% in May. Growth in June was driven by expansions in both the secondary (industrial) and tertiary (services) sectors, each increasing by 0.2%.

Mexico Sees Record FDI Growth in 2024 Driven by Manufacturing

Mexico received US$45.34 billion in FDI in 2024, a 47.9% increase compared to 2023 and the highest annual total since 2013, according to the 2025 UN ECLAC report on FDI in Latin America and the Caribbean.

Baja Sur Unveils Tourist Tax to Fund State Projects

The government of Baja California Sur (BCS) is implementing a mandatory tourism tax called EMBRACE IT, effective June 30, 2025. The tax applies to all foreign visitors staying in the state for more than 24 hours. Tourism authorities expect the program to generate up to MX$256 million (US$13.75 million) in 2025. The revenue will be allocated for infrastructure improvements, conservation initiatives, social and cultural programming, public safety, and tourism services across the state.

Mexico Launches Technical Process for Circular Economy Policy

Mexico's Ministry of the Environment (SEMARNAT) is launching a technical process to develop its National Circular Economy Policy for 2025–2030, marking a major step toward transitioning from a linear model to a sustainable, resource-efficient economic system. The initiative, led by SEMARNAT’s Ministry for Sustainable Development and Circular Economy, began July 17 with a series of working sessions backed by the French Development Agency (AFD) and consultancy firm Global Factor.

Twenty Municipalities Sign National Circular Economy Pact

Twenty Mexican municipalities signed the National Pact of Municipalities for Circular Economy and Trustworthiness, which aims to promote circular economy models that reinforce local governance and citizen confidence. The initiative is being led by the Ministry of Economy (SE) and supported by the International Foundation for the Development of Trustworthy Government (FIDEGOC), the Latin American Network of Trustworthy Governments (RED LAGOC), and Práctica: Laboratorio para la Democracia. Members of the pact include the municipalities of San Luis Potosi, Cozumel, Playas de Rosarito, Delicias and Escobedo, among others.

International

EU Readies Tariff Retaliation as US Threatens 30% Import Duties

The European Union is preparing retaliatory tariffs and exploring legal countermeasures in response to US threats of imposing a 30% tariff on EU imports starting Aug. 1. As transatlantic trade talks stall, EU officials warn that such measures from Washington would severely disrupt global supply chains and effectively halt trade between the two economic powers.

Trump Pulls United States Out of UNESCO, Citing Israel Bias

The US government has announced that it is withdrawing from UNESCO, citing concerns over what it perceives as an anti-Israel bias and the promotion of divisive causes.