Security Concerns Rise After Mexican Anti-Cartel Sweep

An anti-cartel operation by the Mexican government sparked nationwide blockades, raising concerns over security and prompting questions about the United States’ involvement. Authorities confirmed that order has been restored and deployed the military to maintain stability. In addition, the United States issued warnings about potential new tariffs, despite the US Supreme Court ruling that previous tariffs were invalid.

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National

Many Mexican Businesses Halt Operations After Anti-Cartel Move

A federal military operation in Tapalpa, Jalisco, has triggered retaliatory road blockades across several states, resulting in significant interruptions to logistics, retail operations, and national infrastructure. Domestic and international flights to Guadalajara, Manzanillo, and Puerto Vallarta were canceled, while some bus companies also suspended or reprogrammed routes. Some retailers announced temporary closures and others adjusted operating hours to protect employees and clients.

What Was the Role of the United States in El Mencho Operation?

During his State of the Union address, President Donald Trump highlighted US-Mexico cooperation that led to the killing of “El Mencho,” leader of the Cártel Jalisco Nueva Generación. Analysts warn that, while the strike is a major blow to the CJNG, removing its leader alone is unlikely to dismantle the cartel’s networks, leaving the country at risk of continued violence, territorial disputes, and supply chain disruptions.

Sheinbaum Unveils Electoral Reform

President Claudia Sheinbaum has proposed a constitutional electoral reform that would modify proportional representation in Congress, cut election costs and strengthen financial oversight of political parties and the National Electoral Institute (INE). The new electoral reform seeks to reduce public electoral fraud, regulate AI use in campaigns and restructure vote-counting procedures, reshaping Mexico’s political and regulatory framework.

Mexico GDP Grows 0.8% in 2025, Risks Persist for 2026

Mexico’s economy grew 0.8% in 2025, according to INEGI, reflecting structural growth constraints as industrial sectors contracted despite gains in services and agriculture, widening the output gap and weighing on investment and business confidence.

Mexico’s FDI Hits Record US$40.8 Billion Amid Tariff Risks

Mexico closed 2025 with a record US$40.87 billion in foreign direct investment (FDI), up 10.8% year over year, according to the Ministry of Economy. This marks the fifth consecutive year of growth and reinforces the country’s position as a strategic destination for productive capital. The announcement comes at a time when global trade conditions are becoming less predictable, with UNCTAD warning that shifting tariff regimes and legal uncertainty in the United States are redrawing competitiveness across global supply chains.

International

US Supreme Court Limits Presidential Tariff Authority

The Supreme Court of the United States ruled that tariffs imposed by Donald Trump under the International Emergency Economic Powers Act exceeded presidential authority, creating uncertainty for global trade and opening the possibility of billions of dollars in refunds for affected companies. The decision has implications for Mexico and other major trading partners by reshaping the regulatory framework governing tariffs, cross-border trade flows and the USMCA, affecting manufacturing, energy and import-dependent industries. 

US Launches 10% Import Tariff, Signals Possible Increase to 15%

The United States began collecting a temporary 10% global import tariff under Section 122 of the Trade Act of 1974 following the Supreme Court’s decision invalidating broader tariffs imposed under the International Emergency Economic Powers Act, creating renewed uncertainty around US trade policy. The measure, which could rise to 15% and last up to 150 days, affects Mexican exports not covered by USMCA preferences and adds risk for supply chains integrated across North America.