US Tariffs Strain Mexico, Canada Ties: Policy & Economy Week

This week in news: US tariffs on Mexican and Canadian imports are escalating tensions, with 25% tariffs set to take effect on Mar. 4. President Sheinbaum has condemned the move, reaffirming Mexico's commitment to combating fentanyl trafficking. Meanwhile, formal employment in Mexico has declined, though significant investments like Home Depot's US$1.3 billion in the country persist despite tariff concerns.

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Auto Industry Gets Relief from US Tariffs on Mexico, Canada

The United States’ newly imposed tariffs on products from Mexico, Canada, and China are raising trade tensions, but the Trump administration granted a temporary one-month exemption for the auto industry. As the April 2 deadline for broader tariff enforcement approaches, uncertainty looms over key sectors, with Mexico and Canada seeking diplomatic solutions to mitigate economic fallout.

Sheinbaum on Tariffs / Labor Reform for Digital Platform Workers

Advances in Pasta de Conchos Rescue. The Ministry of Labor has confirmed the recovery of 13 miners’ remains from Pasta de Conchos. Marath Baruch Bolaños, Head, Ministry of Labor, presented a report on the Pasta de Conchos Miners’ Rescue Plan.

US Tariffs Spark Trade War Tension With Mexico, Canada, China

March 4 marks the official implementation of the tariffs imposed by the United States on Mexico and Canada. Through a press release, the White House confirmed the imposition of tariffs — 25% on Mexico and Canada, and 10% on China — citing national security concerns and the ongoing fentanyl crisis as justification. The move has sparked accusations of a trade war, drawing strong responses from the affected nations.

Sheinbaum Condemns US Tariffs / Cancer Program Unveiled

US Tariff Response. President Claudia Sheinbaum condemned the US decision to impose a 25% tariff on Mexican imports, calling it unilateral and unjustified despite ongoing bilateral cooperation on security and fentanyl trafficking. She stated that White House statements were offensive and unfounded, emphasizing that Mexico has actively combated organized crime, seized large quantities of drugs and weapons, and significantly reduced fentanyl smuggling into the United States.

Formal Employment in Mexico Dropped 23.6% in February 2025

Formal employment growth in Mexico remained slow in February 2025, with 119,385 workers joining the social security system. This figure represents a 23.6% decrease compared to the same month in 2024, according to data from the Mexican Social Security Institute (IMSS).

Impact of the Mexico Plan on Health Sector Projects

President Claudia Sheinbaum presented the Mexico Plan on Jan. 13, 2025, with the goal of positioning Mexico's economy among the Top 10 in the world and attracting US$277 billion in investments. Within this plan, the pharmaceutical and medical devices sector is key, with goals that include:

US Tariffs on Mexico, Canada Loom as March 4 Deadline Nears

As the March 4 deadline approaches, concerns over the potential implementation of US tariffs on Mexican and Canadian imports continue to grow. US President Donald Trump confirmed last week that a 25% tariff on Mexican imports will come into effect on that date unless significant reductions in fentanyl trafficking are observed. 

US Tariffs / Public Health Promotion

Mexico Prepared for US Tariff Decision. As the deadline for the implantation of tariffs from the United States approaches, President Claudia Sheinbaum stated that meetings with the US government have been based on ongoing communication. "We will wait to see what happens; there are various plans, and they will be reviewed today and tomorrow. There is reassurance that, regardless of the decision, a plan will be implemented," said Sheinbaum. She also noted that the future of the tariffs depends on the US government’s decision. Still, Mexico is prepared, no matter the outcome.

Gasoline Price Cap / ISSSTE Reform Pause

Housing for Well-Being Program Updates. Edna Vega, Minister of Agrarian, Territorial, and Urban Development (SEDATU), announced the launch of construction projects under the Vivienda para el Bienestar (Housing for Well-Being) program. The six-year initiative includes 1 million new homes, 450,000 home improvements and expansions, and 1 million property deeds. By 2025, the target is over 125,000 new homes, 100,000 home improvements in eastern State of Mexico, and 120,000 property deeds, with 500,000 homes funded through Infonavit and another 500,000 by the National Housing Commission (CONAVI).

Home Depot to Invest US$1.3 Billion in Mexico / Trump Tariffs

Investment Thursday. President Claudia Sheinbaum said every Thursday, the morning press conference will feature a new section called “Investment Thursday,” to inform on the main investments planned for Mexico.