GENERAL SITUATION IN MEXICO
Weekly Review I April 9, 2025
US - MEXICO PRESIDENTIAL NEWS
US - MEXICO PRESIDENTIAL NEWS
U.S. Tariff Escalation and Its Economic Fallout
Background:
U.S. President Donald Trump initially announced a sweeping tariff plan including:
• A flat 10% tariff on all imports.
• A potential increase to 50% on Chinese goods.
However, as of April 9, 2025, the U.S. officially raised tariffs on Chinese products to 104%, combining a 50% increase with the existing 54% rate. In retaliation, China raised its tariffs on U.S. goods to 84%, matching the additional U.S. increase. China’s new tariffs went into effect on April 10.
Although a 90-day tariff suspension was initially floated, political pressure and stalled negotiations ultimately led both countries to proceed with the tariff hikes.
Economic and Financial Impact:
The market response was swift and severe:
Between April 2 and April 4, 2025, the S&P 500 fell 20% from its record high, officially entering correction territory.
• Over $5 trillion in market capitalization was erased in just 48 hours.
• On April 2, the index dropped 4.84% following the announcement of broad U.S. tariffs.
• On April 3, it fell another 5.97%.
• On April 4, China announced retaliatory measures, exacerbating losses.
• The CBOE Volatility Index (VIX) surged past 60, its highest point in five years.
• U.S. Treasury yields declined sharply as investors rushed to safe-haven assets, signaling mounting recession fears.
US - MEXICO PRESIDENTIAL NEWS
Macroeconomic implications:
• Tariffs are increasing import costs, leading to broadbased inflation across consumer goods, electronics, industrial inputs, and food.
• Consumer spending may weaken under inflationary pressure and stagnant wage growth.
• The Federal Reserve is now under pressure to reassess its rate policy:
• Planned interest rate cuts may be delayed or cancelled.
• If inflation continues to rise while growth slows, the U.S. risks entering stagflation.
Economists and financial strategists now view trade policy as a direct inflationary shock that could undermine monetary stability.
Global Trade Disruptions and Systemic Risk
The European Union has formally approved retaliatory tariffs on U.S. goods totaling €21 billion (approx. $23 billion), affecting products like almonds, beef, motorcycles, and yachts.
• Tariffs will be implemented in three phases: starting April 15, followed by May 15, and December 1, 2025.
• The EU has left open the option to suspend these tariffs if negotiations with the U.S. progress.
• China condemned the U.S. measures as coercive and unilateral.
• Japan and other allies are scrambling for exemptions to shield critical supply chains.
Global trade architecture is under pressure as countries scramble to shield their economies from collateral damage.
US - MEXICO
Mexico’s Position: Strategic Caution and Diplomatic Engagement
Mexican President Claudia Sheinbaum has taken a restrained approach:
• Mexico was excluded from the new flat 10% tariffs, which Sheinbaum highlighted as a success in maintaining bilateral stability.
• However, existing 25% tariffs on steel, aluminum, and specific auto-related goods remain in place under USMCA enforcement measures.
• Sheinbaum stated that Mexico prefers not to impose retaliatory tariffs but will not rule them out if U.S. actions escalate.
• Economy Minister Marcelo Ebrard will travel to Washington this week to pursue diplomatic dialogue and defend Mexico’s interests.
Mexico’s currency and stock index fell more than 1% on Monday, reflecting investor concern over heightened U.S. trade aggression. With nearly 80% of Mexican exports destined for the U.S., the country remains highly exposed to any trade friction.
SOURCE: REUTERS
LEGISLATIVE CHANGES AND INITIATIVES
LABOR
• BILL ON TAX INCENTIVES FOR EMPLOYERS HIRING RETURNED OR DEPORTED MIGRANTS
Presented by: Dip. Eduardo Castillo López (PueMORENA)
Objective: Proposes a tax incentive for employers who hire returned or deported migrants. The incentive would consist of a 25% deduction from the salary paid to these workers, provided they are returned or deported to Mexico and have the appropriate documentation.
Status: 2025-04-01 - Published in the Parliamentary Gazette
• BILL ON WORK-LIFE BALANCE AND DIGITAL DISCONNECTION
Presented by: Dip. Eduardo Castillo López (PueMORENA)
Objective: Establishes that work must ensure a balance between personal and professional life, guarantees the right to digital disconnection, and encourages workers’ participation in decisions affecting their work environment.
Status: 2025-04-01 - Published in the Parliamentary Gazette
• BILL TO AMEND ARTICLES 60 AND 61 OF THE FEDERAL LABOR LAW
Presented by: Dip. José Alberto Benavides Castañeda (CDMX - PT)
Objective: Reduces the maximum working hours per shift, establishing a uniform limit of seven hours for daytime, nighttime, and mixed shifts.
Status: 2025-04-02 - Published in the Parliamentary Gazette
LEGISLATIVE CHANGES AND INITIATIVES
SUSTAINABILITY
• BILL TO REFORM ENVIRONMENTAL BALANCE LAW AND FEDERAL PENAL CODE
Presented by: Sen. Cynthia Iliana López Castro (CDMX - MORENA)
Objective: Mandates businesses operating in Mexico to submit an annual Sustainability Report detailing measures to prevent, mitigate, or compensate environmental damage. Requires periodic updates to an Environmental Risk Management Plan, covering emissions, waste, resource use, and contingencies. Non-compliance results in fines.
Status: 2025-04-01 - Published in the Parliamentary Gazette
• BILL TO CREATE THE GENERAL LAW ON CIRCULAR ECONOMY
Presented by: Sen. Waldo Fernández González (NL - PVEM)
Objective: Establishes the principles of national policy on circular economy and promotes a National Circular Economy Strategy in line with the National Development Plan. Encourages sustainable production practices, including redesign, reuse, repair, recycling, and waste recovery. Introduces the Green Label, identifying products and services with reduced environmental impact. Mandates businesses to facilitate product recovery and proper waste management.
Status: 2025-04-01 - Published in the Parliamentary Gazette
JUDICIAL
• BILL TO AMEND ARTICLE 79 OF THE AMPARO LAW
Presented by: Sen. Alberto Anaya Gutiérrez (LNal - PT)
Objective: Mandates that authorities overseeing amparo trials must compensate for deficiencies in legal arguments when the case involves environmental protection and biodiversity.
Status: 2025-04-02 - Published in the Parliamentary Gazette
• BILL TO AMEND VARIOUS PROVISIONS OF THE FEDERAL CRIMINAL CODE AND THE NATIONAL CODE OF CRIMINAL PROCEDURE TO SANCTION DIGITAL IDENTITY THEFT
Presented by: Dip. María Soledad Luévano Cantú (Zac - MORENA)
Objective: Allows the Public Prosecutor to request immediate judicial authorization to freeze bank accounts linked to digital identity fraud. The judge must decide within 12 hours, and financial institutions must comply within 24 hours. If the fraud is confirmed, funds will be returned to the victim within 15 business days. Authorities will receive training, and specialized cybercrime units may be created. Congress must harmonize local laws on cybercrime within 12 months.
Status: 2025-04-01 - Published in the Parliamentary Gazette
NEWS BY STATE
BAJA CALIFORNIA
Export industries in Baja California are working to increase the use of Mexican-made inputs in order to meet trade agreement rules and avoid tariffs, particularly on materials like aluminum and auto parts, which could face a 25% duty. Each sector—such as medical devices, electronics, and aerospace—is analyzing its supply chains to identify opportunities to substitute foreign inputs with national ones. Around 50% of exported product content in the region currently comes from high-tariff countries, prompting a broader effort under “Plan México” to strengthen domestic sourcing, enhance competitiveness, and maintain jobs.
SOURCE: INDUSTRIAL NEWS BC
NEWS BY STATE
NUEVO LEON
During a recent economic promotion tour in Europe, the Government of Nuevo León secured over $2 billion USD in foreign direct investment and more than 11,300 new direct jobs for the state. Key announcements included Volvo Trucks increasing its investment to $1 billion for its upcoming heavy vehicle plant in Ciénega de Flores, expected to be the company’s largest and operational by 2026 with 3,000 jobs. Additional highlights include a $508 million expansion by LEGO creating 6,300 jobs, a $260 million investment by Daye in a new automotive plant, and new facilities by FlixBus, Rhenus Automotive, Zinkteknik, and KUKA. Governor Samuel García also held meetings with executives from Bosch, Siemens, Schneider Electric, and ZF Group to explore future collaborations. Further investment announcements from Unilever and Vinci are expected soon, reinforcing Nuevo León’s position as a leading industrial hub in Latin America.
SOURCE: CLUSTER INDUSTRIAL
DURANGO
During the Hannover Messe, the world’s largest industrial fair, the Governor of Durango, Esteban Villegas Villarreal, met with Germany’s Vice Chancellor and Minister for Economic Affairs and Climate Action, Robert Habeck, to strengthen commercial ties between Durango and Europe. They discussed global economic challenges, U.S.–Mexico relations, and Durango’s strategic advantages for foreign investment. As a result, new meetings were scheduled in Berlin with the German Chamber of Small Businesses and industrial companies to explore opportunities in agribusiness, tech innovation, and tourism. The governor highlighted the European tour as a key opportunity to attract investment, adopt cutting-edge technologies, and diversify export markets. He was accompanied by a strategic team from his administration.
SOURCE: INDUSTRY & ENERGY MAGAZINE
NEWS BY STATE
CHIHUAHUA
Vidal Llerenas, Undersecretary of Industry and Commerce at Mexico’s Ministry of Economy, met with the manufacturing sector of Chihuahua City and Ciudad Juárez, along with state officials, to discuss strategies for strengthening national supply chains and protecting the domestic market from Asian imports. The meeting aimed to address concerns about the negative impact of the December 2024 textile decree on the manufacturing industry in northern Mexico. Representatives from major companies and organizations such as Index Chihuahua, Index Juárez, and firms like Johnson & Johnson and Teleflex participated. As a result, it was agreed to establish working groups among various economic and trade departments to develop short-term support tools for the manufacturing sector.
SOURCE: TODO ES POLITICA NEWS
COAHUILA
Coahuila’s recent economic promotion tour in Germany, led by Secretary of Economy Luis Olivares Martínez and ProCoahuila Director Sofía Delgadillo, yielded significant progress in strengthening bilateral economic ties with Germany. At the 2025 Hannover Messe, Coahuila signed a strategic collaboration agreement with Siemens to advance regional development through clean technologies and sustainable practices. The state also took part in key discussions with Germany’s Minister of Economy, Robert Habeck, addressing trade challenges and cooperation opportunities. As part of the “Plan México” initiative, Coahuila promoted itself as a top destination for nearshoring and foreign investment, aligning with the broader national strategy to attract over $277 billion USD across 2,000 industrial projects. The tour reaffirmed Coahuila’s industrial strength, strategic location, and commitment to innovation, advanced manufacturing, and sustainable growth.
SOURCE: GOVERNMENT OF COAHUILA
NEWS BY STATE
GUANAJUATO
In response to upcoming trade challenges, Governor Libia Dennise García Muñoz Ledo of Guanajuato, along with the Secretary of Economy and the head of COFOCE, addressed the economic impact of new U.S. tariffs, especially on Guanajuato’s key sectors like the automotive industry. Reaffirming the state’s resilience and commitment to competitiveness, they introduced a four-pillar strategy—macro, micro, social, and SME-focused—to strengthen regional exports and support local businesses. This includes coordination with federal authorities, support for small businesses, promotion of local products, and free training on trade regulations like USMCA’s Certificates of Origin. Guanajuato also promotes clean energy use in industries and reported record exports of $36 billion in 2024, with nearly 2,000 exporting companies and a goal to reach 3,000. With over $2.1 billion in new investments and more than 10,000 job openings available across 2,000 companies, the state is actively connecting its workforce to new opportunities through innovative digital platforms that match talent with industry demand.
SOURCE: MEXICO INDUSTRY
QUERETARO
A delegation from Querétaro visited Germany and Italy, securing over 2.5 billion pesos in European investments for five projects, creating more than 900 specialized jobs. The delegation held over 100 business meetings and participated in various diplomatic engagements. Notable investments include Novem, which will produce luxury car interiors, and Epta, which will build its 13th plant in Querétaro. Additionally, they met with companies like Microsoft, Siemens, and others to strengthen supply chains and training. The delegation also discussed tariff issues with Germany’s Economic Affairs Minister and planned a mission of Italian companies to Querétaro in May 2025, coinciding with the World Auto Parts Summit.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE
CDMX
To combat crime in Mexico City, the local government and business leaders have agreed to invest 600 million pesos in expanding video surveillance, aiming to increase the number of cameras from 83,414 to over 150,000. This initiative, announced by the Ministry of Economic Development (Sedeco), includes linking private business cameras directly to the city’s Command and Control Center (C5). Quarterly meetings between officials and the business group G9 will track progress and adapt strategies. Sedeco head Manola Zabalza emphasized the importance of secure businesses for employment and well-being. Secretary of Citizen Security Pablo Vázquez noted a recent drop in high-impact crimes and homicides. C5 coordinator Salvador Guerrero highlighted that Mexico City is already significantly more surveilled than neighboring states and sees this investment as a key step forward. Business leaders from Coparmex and the Council of Global Companies expressed strong support and called for future collaboration with the State of Mexico.
SOURCE: EL ECONOMISTA
Since 2022, Line 1 of Mexico City’s Metro— operating since 1969—has undergone a major modernization after over 50 years without comprehensive maintenance. Divided into two phases, the project includes upgrades to tracks, electrical systems, and stations, with a total investment of 37 billion pesos. The first phase ended in late 2023 with the reopening of the Pantitlán-Balderas segment. The second phase began in November 2023, covering the Balderas-Observatorio stretch, which is expected to partially reopen in April 2025, though some stations will remain closed until mid-year. Renovations include universal accessibility, 10 new elevators, thousands of LED lights, refurbished floors, and a modern CBTC train control system. Despite delays in 2024, additional projects such as Metro-Energía and a new Central Control Post are underway. Overall, the goal is to provide safer, more efficient, and accessible transportation for the millions of users who rely on Line 1 daily.
NEWS BY STATE
STATE OF MEXICO
Azucena Cisneros, Mayor of Ecatepec, announced a 700 million peso investment in water infrastructure during her first 100-day report. The funds will rehabilitate 24 wells, benefiting over 250,000 residents, with the goal of ensuring water access via the city’s network. Additionally, a new elevated tank will be built in La Cañada and La Quinta Zona. This adds to 29 wells and 7 pumping stations already restored. Other improvements include fixing 1,000 leaks and upgrading key water lines. In security, the city is launching the country’s first AI-powered command center (C7), installing over 60 surveillance cameras, 10,000 alarms, and purchasing 500 new patrol cars. The number of community police sectors increased from 7 to 27. Other achievements include roadworks on 139 streets, a drainage campaign covering 100 streets, 9,700 tons of garbage collected, and plans for waste separation and transfer centers. A new justice center for women and a safe university transport program are also planned.
SOURCE: EL HERALDO DE MÉXICO
INVESTMENT NEWS
NORTH
WEIDMANN
Swiss company Weidmann Electrical Technology has inaugurated a new plant in Saltillo, Coahuila, with an investment of 30 million dollars. The facility will create over 750 direct jobs and will primarily focus on the production of insulation materials for power transformers.
UNILEVER
Unilever announced an investment of 800 million dollars to build a new plant in Salinas Victoria, which will primarily supply the United States and Canadian markets. The facility will be located in the Salinas Industrial Park and is expected to create over 1,600 jobs.
LEGO
After meeting with LEGO executives in Copenhagen, Denmark, Governor Samuel García Sepúlveda announced that the toy manufacturer is moving forward with a new expansion of its plant in Ciénega de Flores, Nuevo León, with an investment of 508 million dollars.
RHENUS
Rhenus Automotive, a company specialized in logistics and production for the automotive industry and a supplier to Volvo, announced a 50 million dollar investment for the construction of a new plant in Nuevo León.
FLIXBUS
Mobility company FlixBus confirmed a 162 million dollar investment for the development of a logistics hub in Nuevo León. The announcement was made during the European working tour of Nuevo León’s governor, Samuel García.
CENTRAL MEXICO
PROMA GROUP
Proma Group has decided to invest 28.9 million dollars in Aguascalientes. The Italian company, specialized in the manufacturing of seats and structures for the automotive industry, will develop a new facility that will generate over 225 jobs.
NOVEM CAR
Novem Car, a company specialized in the manufacturing of design products and interior solutions, will invest over 306 million pesos in the expansion of its plant in Querétaro. This project also aims to create 150 highly specialized jobs.
EPTA
Epta, a company specialized in developing commercial refrigeration products and solutions, will establish a plant in the state of Querétaro. Through this project, the Italian company expects to create 300 jobs, as confirmed by the state government in a press release.
SOLDIGM TECHNOLOGY
Solidigm Technology, specialized in data storage solutions, has officially launched operations in Jalisco with the opening of its new facility in Zapopan. The plant is staffed by over 140 highly specialized engineers dedicated to the design and validation of advanced data storage solutions.
SOURCES: MEXICO INDUSTRY, EL UNIVERSAL, EL ECONOMISTA
PRODENSA INSIGHTS
ENERGY IN MEXICO: A STRATEGIC ADVANTAGE FOR MANUFACTURERS
As global manufacturers eye Mexico for nearshoring, understanding the country’s evolving energy sector is critical. In our latest blog, we break down the opportunities and challenges of doing business in Mexico’s energy landscape—from navigating the electricity grid and industrial tariffs to exploring the country’s renewable energy potential.
Whether you’re expanding operations or investing in new facilities, this guide provides actionable insights to help you plan ahead and make energy a strategic asset in your Mexico operations.
WATER STRATEGY: A KEY TO SUSTAINABLE GROWTH IN MEXICO
Water access and management are becoming critical factors in site selection and long-term success for manufacturers in Mexico. In our latest post, we explore how water availability, infrastructure, and regulation impact industrial development—and what companies can do to proactively manage risk.
From understanding regional differences to planning sustainable water strategies, this article is a must-read for decision-makers navigating Mexico’s evolving industrial landscape.