Trump's Tax Plan Stalls, Mexico Ramps Up USMCA Strategy

Donald Trump’s tax reform plan hits a major roadblock after a faction of conservative Republicans blocked its progress. Mexico aims to strengthen its USMCA review strategy by involving labor unions and private sector leaders in a unified negotiation front. In addition, Foreign Affairs Minister Marcelo Ebrard pushes for a USMCA semiconductor chapter under Mexico’s 2024–2030 plan, backed by Cisco and Qualcomm.

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Trump’s Big, Beautiful Tax Bill Stumbles Amid Republican Division

President Donald Trump’s tax reform plan, dubbed the “Big, Beautiful Tax Bill,” has hit a major roadblock after a faction of conservative Republicans blocked its progress in the House Budget Committee. At the center of the controversy is a proposed 5% tax on remittances sent abroad, a move that reignited diplomatic tensions with Mexico and drew sharp criticism from President Claudia Sheinbaum’s administration.

Mexico Proposes USMCA Semiconductor Chapter

The Ministry of Economy announced that during the recent Semiconductor Cooperation Forum, a proposal was made to include a dedicated chapter on semiconductors in the USMCA. The initiative aligns with efforts in Mexico and the United States to support domestic semiconductor production and reduce dependence on Asian imports.

COPARMEX to Include Unions in Upcoming USMCA Review Talks

As the United States-Mexico-Canada Agreement (USMCA) approaches its six-year review, Mexico’s private sector and labor unions are positioning themselves to take an active role in shaping the next phase of regional economic integration.

Mexico Removes Controversial Article From Telecom Law

The Mexican government has removed Art. 109 from the new Telecommunications and Broadcasting Law, following criticism that it could enable censorship on digital platforms. José Antonio Peña, Head, Digital Transformation Agency, explained that the article was removed to prevent any misinterpretation. “Art. 109, which caused confusion and controversy, has been removed. As the president stated, there is no censorship in this government,” he said.

Belize, Mexico Deepen Ties with Mayan Train Expansion Plan

On May 14, 2025, Prime Minister of Belize John Briceño and Mexican President Claudia Sheinbaum held a phone call that focused on enhancing bilateral cooperation and economic integration. The high-level dialogue addressed key areas including expanded market access for Belizean cattle and coconuts, energy cooperation, and plans to extend the Mayan Train to the Belizean border.