GENERAL SITUATION IN MEXICO
Weekly Review I February 26, 2025
US - MEXICO PRESIDENTIAL NEWS
US - MEXICO PRESIDENTIAL NEWS
Trump
reaffirms tariffs on Canadian and Mexican imports as border security measures intensify
Background:
• President Donald Trump stated that tariffs on Canadian and Mexican imports remain on schedule despite measures taken by both countries to strengthen border security and combat fentanyl trafficking.
• He reiterated his commitment to imposing 25% duties on imports from Canada and Mexico, dismissing hopes that recent security efforts would delay the decision.
• The tariffs, affecting over $918 billion in goods, could disrupt the North American economy, particularly the automotive sector.
US - MEXICO PRESIDENTIAL NEWS
Security Measures and Diplomatic Consequences:
• Canada and Mexico had previously secured a delay from an initial February 1 deadline by enhancing border controls, but Trump’s latest statement suggests no further postponements.
• Mexico deployed 10,000 National Guard troops along its northern border and urged the U.S. to curb firearm trafficking.Canada appointed a fentanyl czar, classified drug cartels as terrorist entities, and increased surveillance along the U.S.-Canada border.
• Prime Minister Justin Trudeau has threatened retaliatory tariffs on $107 billion worth of U.S. imports but emphasized ongoing efforts to avoid the penalties.
Market and Political Reactions:
• Trump’s push for “reciprocal” tariffs could trigger an early renegotiation of the USMCA before its scheduled review in 2026.
• His administration also revived tariff investigations into digital service taxes imposed by Canada, France, and other countries on U.S. tech firms.
• Mexican Economy Minister Marcelo Ebrard described his recent talks with U.S. trade officials as “constructive,” with further discus• The White House has yet to comment on negotiations, while uncertainty over the tariffs fuels tensions in cross-border trade relations.
SOURCE: REUTERS
US - MEXICO PRESIDENTIAL NEWS
Trump announces tariffs on copper
• President Donald Trump signed an executive order instructing the Department of Commerce to assess potential tariffs on copper, aiming to reshape global supply chains.
• The administration cites national security concerns, alleging that global overcapacity and dumping have weakened U.S. copper production, making critical industries reliant on imports. The review falls under Section 232 of the Trade Expansion Act, which grants the president broad trade restriction authority.
• Commerce Secretary Howard Lutnick stated that tariffs could help revitalize domestic copper production, similar to measures on steel and aluminum set for March.
• Trump’s trade advisor, Peter Navarro, ac-
cused China of manipulating global markets to undermine competitors. The U.S. imported 1.6 million tons of refined copper in 2024, with Chile, Canada, and Mexico being key suppliers. Imports account for 36% of domestic demand.
• Trump’s unexpected move rattled copper markets, driving U.S. futures up 13% this year.
• The announcement widened the price gap between U.S. and London Metal Exchange copper contracts, raising concerns about potential supply disruptions.
• While tariffs may increase domestic production, they could also raise costs for American industries dependent on imported copper. The long-term market impact remains uncertain.
SOURCE: EL FINANCIERO
RELEVANT NEWS INDUSTRIES
AUTOMOTIVE/EV:
GAC Expands in Mexico with New Hybrid and Electric Models. Awarded by JD Power for eight consecutive years, GAC is expanding its presence in Mexico by increasing its lineup from three to seven models, now including gasoline, fully electric, and, for the first time, hybrid electric (HEV) and plug-in hybrid (PHEV) vehicles. This move aligns with GAC’s NEXT strategy, which focuses on electrification and smart mobility, integrating AI into both electric (EV) and hybrid (XEV) vehicles. As part of this expansion, GAC will introduce two new models in April 2024: the GS8 HEV, an allwheel-drive hybrid SUV featuring Toyota’s Hybrid System (THS) for high performance and efficiency, and the GN8 PHEV, a premium plug-in hybrid MPV that blends luxury with sustainability. GAC Mexico’s president, Rafe Huang, emphasized the company’s commitment to providing high-quality, eco-friendly vehicles tailored to Mexican consumers, reinforcing GAC’s role in the country’s transition to smarter and greener mobility.
SOURCE: MEXICO INDUSTRY
JAC Shows Interest in Producing Mexico’s First Popular Electric Car. Automaker JAC has confirmed its interest in manufacturing the Olinia, Mexico’s first fully electric popular car, at its plant in Hidalgo. Elías Massri, CEO of Giant Motors Latinoamérica, emphasized JAC’s strong ties with the state government and its commitment to local production. The Olinia project, led by the Federal Government, aims to develop a sustainable and affordable Mexican electric vehicle while boosting national technology. Potential production sites include Sonora, Puebla, and Hidalgo. Additionally, JAC plans to increase its production to 35,000 vehicles in 2025, following a successful 2024 with 24,826 units sold—an 18% growth from the previous year. The company aims to sell 33,000 units this year, reinforcing its position in Mexico’s automotive industry.
SOURCE: MEXICO INDUSTRY
RELEVANT NEWS INDUSTRIES
Nissan is moving forward with an accelerated restructuring plan after failed merger talks with Honda, aiming to cut 9,000 jobs globally starting in fiscal year 2025. Of these, 6,500 will come from manufacturing, including assembly and engine plants, while the remaining 2,500 will be indirect reductions through leaner operations, slowed hiring, and retirement incentives. The plan includes a 20% reduction in production capacity, cutting annual output from five million to four million vehicles by fiscal 2026, with half a million fewer cars produced in China and the rest of the world. Three production sites will close, including one confirmed plant in Thailand, with the other two closures expected between late 2025 and fiscal 2026. Additionally, Nissan is eliminating shifts at its U.S. plants in Tennessee and Mississippi.
Despite these global cuts, Nissan has yet to decide on changes to its operations in Mexico, which recorded the company’s highest production figures worldwide in 2023, surpassing both China and Japan. Last year, Nissan produced 669,941 vehicles in Mexico, exporting 456,866 units, with one-third of shipments going beyond the U.S. However, potential tariffs on Mexican exports to the U.S. could impact production decisions, with some models possibly shifting to Japan. One area of concern is the underutilized COMPAS plant, co-run with Mercedes-Benz, where production is expected to decrease further as a key model assembled there will be discontinued at the end of 2024, making it a likely candidate for closure.
SOURCE: MEXICO NOW
RELEVANT NEWS INDUSTRIES
AEROSPACE
FAMEX 2025 will provide small and medium-sized enterprises (SMEs) with opportunities to enter the aerospace sector, provided they present well-structured business plans to attract investors and establish strategic alliances. General Disraelí Gómez Herrera, director of FAMEX 2025, emphasized that many SMEs are close to becoming investment-ready but need to refine key aspects to secure funding and business partnerships. To support this, the fair has enlisted the help of state governments and economic development offices to train and prepare SMEs for the event. The focus is on strengthening the aerospace supply chain, increasing national content in exported parts, and connecting Tier 1 manufacturers with lower-tier suppliers and companies transitioning into aerospace. FAMEX will serve as a key platform for these efforts, facilitating networking and investment opportunities.
SOURCE: MEXICO NOW
NEWS BY STATE
BAJA CALIFORNIA
Compañías Mexicanas de la Industria de la Construcción de Ensenada (COMICE) introduced Ciudad Jatay, a large-scale industrial project set to develop over 5 to 10 years, spanning 1,090 hectares. Of this, 350 hectares will be dedicated to an industrial park and 150 to a technology park, with the remaining space used for housing, commercial, and tourism developments. With a $4 billion investment, the project aims to drive economic growth in Baja California. Envisioned as a hub for advanced manufacturing in the automotive, aerospace, and electronics sectors, Ciudad Jatay will create specialized jobs and streamline customs processes to optimize costs and operations. A master plan, including energy, logistics, and port infrastructure, has already been presented, with expectations of generating up to 5,000 jobs.
SOURCE: INMOBILIARE
NEWS BY STATE
CHIHUAHUA
The Institute for the Support of Technological Development (Inadet) signed a collaboration agreement with the Vivevolando Academy to enhance the skills of Chihuahuenses in the aeronautical sector through specialized training at the High Technology Training Center (Cenaltec). The agreement includes various specialties such as Mental Health, Machining, Welding, Electronics, and Quality Management, among others. Sergio Mancinas, Inadet’s general director, emphasized the region’s growing prominence in the industry, while Michelle Sanchez, Vivevolando’s director, highlighted upcoming projects and access to advanced machinery. The event also featured the inauguration of a high-tech classroom and the awarding of certificates to students who completed a Customer Service course.
SOURCE: MEXICO NOW
NUEVO LEON
Nuevo León’s Ministry of Economy and Build Your Dreams (BYD) signed a memorandum of understanding to promote electromobility by enabling digital platform operators, such as Uber and Didi, to access electric and hybrid vehicles like the BYD Dolphin Mini EV and BYD King DM-I. The agreement, signed by Emmanuel Loo of the Ministry of Economy and Jorge Vallejo, BYD Mexico’s Director, aims to reduce the environmental footprint and improve transportation infrastructure. Through One Car Now, flexible financing plans will be available to facilitate the transition to electric mobility. Additionally, BYD will collaborate on expanding charging infrastructure, while the Ministry of Economy will connect interested companies and operators with BYD to promote clean energy adoption. This initiative supports Nuevo León’s sustainable development goals, fostering a cleaner and more efficient transportation ecosystem.
SOURCE: CLUSTER INDUSTRIAL
NEWS BY STATE
JALISCO
Parks Industrial has inaugurated the first phase of El Salto Park III, a logistics complex in El Salto’s industrial corridor, south of Guadalajara. Spanning 535,185 m², the project will feature 315,507 m² of industrial buildings. The first phase covers over 100,000 m², with 90% already leased, prompting the launch of the second phase, expected to be completed within 18 months. The $250 million investment aims to strengthen the region’s industrial sector and generate around 5,000 jobs.
CEO Charles El-Mann Metta emphasized the project’s role in innovation and logistics, while Mayor María Elena Farías highlighted its impact on employment and economic growth. Parks Industrial now operates eight industrial parks in Jalisco, solidifying the state as a top investment hub in Mexico.
SOURCE: MEXICO NOW
QUERETARO
In the first half of the year, three new automotive dealerships will open in Querétaro, representing an $8.3 million investment and creating 240 direct jobs. According to Laura Rodríguez Miranda, president of AMDA Querétaro, the state is a strategic hub for the sector, with 2025 expected to bring further growth. The new dealerships include two light vehicle brands and one motorcycle brand, with Lincoln opening a showroom within a new Ford dealership and Harley-Davidson returning to the state. In 2024, 16 new agencies have already been established, bringing $64 million in investments and 1,200 jobs. Querétaro is a key market due to its legal stability and security, ranking as the tenth-largest automotive market in Mexico. In January, the state sold 2,964 new vehicles, with trucks making up 55.3% of sales, and Nissan, Volkswagen, General Motors, Kia, and Toyota leading the market.
SOURCE: MEXICO NOW
NEWS BY STATE
CDMX
Mexico City’s Head of Government, Clara Brugada, pledged to set a record in public investment, infrastructure, and public works. Speaking at the swearing-in ceremony for the new board of the National Chamber of the Construction Industry (CMIC), Brugada emphasized collaboration between the government and the construction sector to drive urban development. To streamline investment, she announced the creation of a “one-stop shop” for digitalizing administrative procedures. Additionally, new infrastructure projects include five Cablebús lines, Metrobús expansion, and public space regeneration initiatives. Brugada also reaffirmed her commitment to affordable housing and fair taxation policies while dismissing claims of mass expropriations. She promised transparency in public contracts and initiatives to support women-led businesses, ensuring that 10% of public contracts are awarded to them starting this year. The new CMIC board members assumed office for the 20252027 term, with Brugada urging continued accountability in the government’s historic investment in the capital’s development.
SOURCE: LA PRENSA
STATE OF MEXICO
The State of Mexico (Edomex) invested over 19 million pesos in university infrastructure, benefiting 6,778 students. The funds were allocated to the Polytechnic University of the Valley of Mexico (UPVM), the Mexiquense University of the Bicentennial (UMB), and the Normal School of Santiago Tianguistenco. Education Secretary Miguel Ángel Hernández Espejel emphasized that these improvements align with Governor Delfina Gómez Álvarez’s policy of addressing student and faculty needs. Investments included a perimeter wall and painting at UPVM (9.8 million pesos), an academic unit at UMB (4.4 million pesos), and six classrooms, stairways, and waterproofing at the Normal School (5.1 million pesos). Additionally, the government promotes financial aid, including federal and state scholarships and international exchange programs, to support student success. This initiative reflects the state’s commitment to quality higher education and improved academic facilities.
SOURCE: ADN NOTICIAS
INVESTMENT NEWS
NORTH
ALLIED MACHINERY
The Chinese company Allied Machinery, specialized in the manufacturing of machined components and iron-cast for OEMs, has announced an investment of 250 million dollars for the construction of a new plant in Marín, Nuevo León. The plant is expected to create 150 jobs.
CENTRAL MEXICO
TROUW NUTRITION
With an investment of 1,000 million pesos, the Dutch company Trouw Nutrition inaugurated a new plant dedicated to the production of animal protein in Colón, Querétaro. The construction and operation of the plant have generated 150 direct jobs.
SOURCE: MEXICO INDUSTRY
LEGISLATIVE CHANGES AND INITIATIVES
LABOR
• BILL TO ADD CHAPTER II BIS TO TITLE VII OF TAX INCENTIVES IN THE INCOME TAX LAW, REGARDING TAX INCENTIVES FOR HIRING WOMEN
Presented by: Parliamentary Group of the National Action Party (PAN)
Objective: Grants a tax incentive to individuals or legal entities subject to income tax who employ women aged 18 and over. Employers may deduct up to 25% of the wages paid, increasing to 35% if they provide certified training programs. Compliance with social security obligations is required.
Status: Published in the Parliamentary Gazette
• BILL TO ADD SECTION VIII TO ARTICLE 170 OF THE FEDERAL LABOR LAW
Presented by: Sen. Beatriz Mojica Morga (GroMORENA)
Objective: Grants working mothers the right to receive a maternity bonus equivalent to one week’s salary before their child’s birth.
Status: Published in the Parliamentary Gazette
• ARTICLE 123 OF THE CONSTITUTION
Presented by: Karen Michel González Márquez (LNal - PAN)
Objective: This initiative establishes that everyone has the right to dignified and socially useful work, promoting job creation and the social organization of work, in accordance with the law and gender perspective principles.
Status: Presented to the plenary of the Senate
LEGISLATIVE CHANGES AND INITIATIVES
CYBERSECURITY
• AGREEMENT FOR THE PREVENTION OF CYBER FRAUD
Presented by: Sen. Miguel Márquez Márquez (Gto - PAN)
Objective: Urges the Federal Consumer Protection Agency and the National Commission for the Protection and Defense of Financial Services Users to strengthen awareness campaigns for the prevention of cyber fraud, within their respective areas of competence.
Status: Published in the Parliamentary Gazette (2025-02-13)
• BILL TO AMEND ARTICLE 73 OF THE POLITICAL CONSTITUTION OF THE UNITED MEXICAN STATES
Presented by: Sen. Rafael Alejandro Moreno Cárdenas (LNal - PRI)
Objective: To grant the Congress of the Union the authority to enact a general law that allocates responsibilities among different levels of government regarding cybersecurity.
Status: Published in the Parliamentary Gazette (2025-02-13)
• BILL TO AMEND ARTICLE 73 OF CONSTITUTION
Presented by: Sen. María Martina Kantun Can (Camp - MORENA)
Objective: To grant the Congress of the Union the authority to enact general laws on Artificial Intelligence. The Congress of the Union must amend the relevant secondary legislation regulating artificial intelligence within 180 days from the enactment of this decree.
Status: Published in the Parliamentary Gazette (2025-02-13)
• BILL TO AMEND ARTICLE 23 OF THE LAW REGULATING CREDIT INFORMATION COMPANIES
Presented by: Dip. Gloria Elizabeth Núñez Sánchez (Plur - MC)
Objective: Reduces the retention period for credit histories held by credit information companies to 60 months. Also mandates the deletion of compliance records after 60 months and requires the removal of non-compliance records after the same period from the first recorded instance.
Status: Published in the Parliamentary Gazette (2025-02-18)
LEGISLATIVE CHANGES AND INITIATIVES
FINANCIAL AND ECONOMIC
• INITIATIVE FOR THE FEDERAL ANTITRUST AND ECONOMIC COMPETITION LAW
Presented by: Deputy Alfonso Ramírez Cuéllar (Plur - MORENA)
Objective: This law aims to promote, protect, and guarantee free competition and economic fairness by preventing, investigating, and eliminating monopolies, anticompetitive practices, illicit concentrations, and other barriers to effective market functioning.
Status: 2025-02-18 - Published in the Parliamentary Gazette
• BILL TO AMMENDARTICLE 171 OF THE SECURITIES MARKET LAW
Presented by: Sen. Juanita Guerra Mena (MorPVEM)
Objective: Allows brokerage firms to execute fund transfers and payment obligations based on client instructions through payment systems in accordance with applicable law.
Status: Published in the Parliamentary Gazette (2025-02-13)
PRODENSA INSIGHTS
SIGNIFICANT CHANGES: U.S. IMPORT TARIFFS ON STEEL AND ALUMINUM PRODUCTS
On February 10, 2025, President Trump signed a proclamation implementing significant changes to import tariffs on steel and aluminum products under Section 232 of the Trade Expansion Act of 1962.
• Effective March 12, 2025, a 25% tariff will apply to all steel and aluminum imports, eliminating previous country exemptions and alternative tariff agreements.
• No product exclusions will be granted—the Department of Commerce will no longer accept exclusion requests.
• Derivative products made from imported steel and aluminum will now be subject to tariffs, with further details to be published in the Federal Register.
• U.S. Customs and Border Protection (CBP) will increase enforcement, imposing maximum penalties for tariff evasion and misclassification.
• No duty drawbacks will be available for tariffs under the updated Section 232 policy.
PRODENSA INSIGHTS
MONTERREY’S BOOMING INDUSTRIAL REAL ESTATE MARKET
Monterrey has solidified its position as Mexico’s premier nearshoring hub, driving a surge in industrial real estate demand. In 2024, nearshoring investments fueled a 39% rise in industrial rents, with vacancy rates below 4% in major markets like Monterrey, Guadalajara, and Mexico City.
KEY MARKET TRENDS:
• Monterrey leads nearshoring investments – 22% of all nearshoring capital since 2021.
• Expansion into secondary markets – Saltillo emerges as an EV manufacturing hotspot.
• Growth in high-value manufacturing – Mexico became the top U.S. supplier of advanced technology in 2024.
• Custom-built industrial spaces dominate – Businesses favor long-term site strategies over short-term leasing.
CHALLENGES & OUTLOOK FOR 2025:
• Rising labor costs and energy infrastructure demands.
• Political shifts influencing investment decisions.
• Market stabilization expected in Q2 2025, with continued export growth.
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