Local Supply Chains Boosted, US-Canada Trade War Intensifies

Mexico is strengthening local supply chains as Caintra expands Pymes' role in manufacturing and the government tightens controls on Asian imports. In addition, Claudia Sheinbaum weighs buying more US goods to narrow Mexico's trade surplus as USMCA's fourth review round nears in September 2026.

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Caintra Targets Asian Imports Through Local Supply Chains

The Cámara de la Industria de Transformación de Nuevo León (Caintra) is seeking to expand the role of small and medium-sized enterprises (Pymes) in domestic supply chains as Mexico moves to reduce its dependence on Asian imports and strengthen local manufacturing capacity. The strategy was a central theme at Expo Pyme 2026, which expects to generate MX$14.5 billion in business activity at Cintermex.

Mexico Weighs Buying More From the US as USMCA Review Approaches

President Claudia Sheinbaum said her government is studying whether to expand purchases of US goods as a way to ease the trade imbalance with Mexico's largest commercial partner, a move that would directly respond to pressure from Washington ahead of the next round of talks on the USMCA. Sheinbaum said Mexican electronics exports have also picked up recently, benefiting from the AI boom and the wave of data center construction underway in the United States.

Canada's Retaliatory Tariffs Take Effect

Canada's counter-tariffs on US goods became law at 12:01 a.m. on Sept. 8, marking the sharpest escalation yet in a trade dispute between Ottawa and Washington that has spilled well beyond economics. The measures, covering roughly US$20 billion in American imports, carry duties of 15% to 50% and hit steel, dairy, appliances, agricultural machinery, pulp and paper, and electronics, sectors Canada says have absorbed the brunt of earlier US action.

US Escalates Trade Dispute With Canada, Bans Key Goods

The cross-border trade dispute between the United States and Canada reached a major turning point on Tuesday 8th as US President Donald Trump signed executive proclamations banning key Canadian imports and expanding tariffs. The measures were announced just hours after Ottawa’s reciprocal tariffs of up to 50% took effect on roughly US$20 billion in American products.

Three Mexican States Lead New FDI Amid Investor Caution

Mexico attracted US$2.73 billion in new foreign direct investment (FDI) during 1H2026, a 13.4% decline from the same period a year earlier, as uncertainty surrounding the USMCA review and changing trade conditions prompted companies to take a more cautious approach to new capital commitments.

Sheinbaum Prepares Digital Economy Law to Curb Cash Use

Mexico's federal government will send Congress a Digital Economy Law as part of the reforms accompanying the 2027 Economic Package, President Claudia Sheinbaum confirmed on Sept. 8. The initiative aims to gradually reduce the country's reliance on cash in everyday transactions, setting specific timelines to push forward the digitalization of economic operations.