TRUMP DOWNSIZES USMCA
• USMCA negotiations faced renewed political pressure after President Trump stated he would prefer not to renew the agreement, arguing that it is more important for Mexico and Canada than for the United States.
• The comments came shortly after the third bilateral negotiating round and underscore Washington’s objective of securing stricter automotive rules of origin, increasing U.S. content in North American manufacturing, and reducing reliance on components from China and other non-regional suppliers.
• Trump also reiterated his strategy of encouraging manufacturers to relocate production to the United States through tariffs and industrial incentives.
• Mexico responded by emphasizing the strategic importance of the bilateral economic relationship.
• Secretary of Economy, Marcelo Ebrard, noted that Mexico is the largest purchaser of U.S. exports, arguing that the commercial relationship delivers significant benefits to both economies.
• He also stressed that Mexico continues to receive preferential treatment under USMCA, including the recent U.S. decision to maintain existing tariff conditions.
• Although Washington replaced its Section 122 tariff framework with new Section 301 tariffs related to forced labor, Mexico’s tariff treatment remained unchanged.
• Both governments are expected to resume negotiations during the fourth round in Washington in September, with Mexico seeking greater certainty for investors and protection against future unilateral tariff measures.
SOURCE: EL PAIS, EL FINANCIERO
US-MEXICO NEWS
WORLD BANK REAFFIRMS SUPPORT FOR PLAN MÉXICO
• World Bank President, Ajay Banga, reaffirmed the institution’s commitment to supporting Mexico’s economic development through closer alignment with the federal government’s Plan México during his first official visit to the country.
• The World Bank is preparing a new Country Partnership Framework aimed at translating policy priorities into investment and measurable outcomes, with a focus on job creation, inclusive growth, energy, infrastructure, human capital, competitive industries, and stronger supply chains.
• Banga also held meetings with government officials, business leaders, and President Sheinbaum to discuss cooperation.
• The new partnership framework could facilitate additional financing opportunities for infrastructure, manufacturing, and sustainable development projects.
Source: EL ECONOMISTA, EL UNIVERSAL
MEXICO POSTS RECORD TRADE SURPLUS
• Mexico recorded a historic trade surplus of US$9.9 billion during the first half of 2026, supported by record export performance.
• Total exports reached an all-time high of US$389.7 billion in the first six months of the year, while June alone marked the strongest monthly export value on record.
• Manufacturing remained the main driver, particularly non-automotive industries, with the United States continuing to absorb more than 84% of Mexico’s nonoil exports.
• Analysts noted that exports continued to outpace imports, strengthening Mexico’s external accounts and increasing the likelihood of a current account surplus.
• The results highlight the resilience of Mexico’s export-oriented manufacturing sector and the continued integration of North American supply chains.
• Much of the non-oil trade surplus reflects Mexico’s role as a manufacturing and assembly platform, importing intermediate inputs—particularly from Asia— for processing and re-export to the U.S. While the strong trade balance supports macroeconomic stability, analysts caution that long-term performance remains closely tied to the outcome of ongoing USMCA negotiations.
SOURCE: EL ECONOMISTA, EL IMPARCIAL
MEXICO’S ECONOMIC GROWTH
• Mexico’s economy expanded by 1.5% quarter-over-quarter in the second quarter of 2026, marking its strongest quarterly performance since late 2020, according to INEGI’s preliminary GDP estimate.
• Growth was broad-based across the economy, with services rising 1.5%, industrial activity increasing 1.6%, and agriculture expanding 3.3%. The rebound follows a modest contraction in the first quarter and was supported by stronger domestic consumption, resilient manufacturing activity, and increased economic activity associated with the 2026 FIFA World Cup, which generated an estimated MXN 65 billion in economic impact across Mexico.
• The stronger-than-expected performance reinforces signs of improving economic momentum despite ongoing external uncertainty.
• While the federal government continues to project 2.3% GDP growth for 2026, private-sector forecasts remain more cautious, averaging around 1.1%, and the International Monetary Fund recently lowered its projection to 1.2%, citing global trade fragmentation and geopolitical risks.
• Nevertheless, the latest GDP data, together with easing inflation and record export performance, suggest Mexico has entered the second half of the year with stronger underlying fundamentals, even as the outcome of USMCA review negotiations and U.S. trade policy remain key factors shaping the country’s medium-term outlook.
SOURCE: EL UNIVERSAL
LEGISLATIVE CHANGES AND INITIATIVES
LABOR
• INITIATIVE AMENDING VARIOUS PROVISIONS OF THE FEDERAL LABOR LAW, THE INCOME TAX LAW, AND THE FEDERAL LAW ON STATE WORKERS REGARDING THE LABOR INCLUSION OF YOUNG PEOPLE
Presented by: Chamber of Deputies – Parliamentary Group of Movimiento Ciudadano
Objective: Requires employers with forty or more workers to hire at least five percent young people without prior IMSS employment records while guaranteeing gender equality. It also grants income tax deductions for employers hiring eligible young workers.
Status:Published in the Parliamentary Gazette –July 29, 2026.
• INITIATIVE AMENDING VARIOUS PROVISIONS OF THE FEDERAL LABOR LAW AND THE FEDERAL LAW ON STATE WORKERS REGARDING MENSTRUAL LEAVE
Presented by: Chamber of Deputies – Deputy Rafaela Vianey García (MORENA)
Objective: Requires employers to grant menstruating employees at least five paid working days of menstrual leave per menstrual cycle when symptoms prevent them from performing their job duties. Status: Published in the Parliamentary Gazette – July 29, 2026.
ENVIRONMENTAL
• INITIATIVE AMENDING ARTICLE 29 OF THE FEDERAL ENVIRONMENTAL LIABILITY LAW
Presented by: Senate – Senator Cindy Winkler Trujillo (PVEM)
Objective: Extends the statute of limitations for environmental liability claims from twelve to twenty-five years following environmental damage. The initiative strengthens the principle of full environmental remediation, prevents responsible parties from benefiting from prescription periods, and reinforces Mexico’s environmental protection framework under prevention, precaution, and sustainable development principles.
Status:Published in the Parliamentary Gazette –July 29, 2026.
NEWS BY STATE BAJA CALIFORNIA
The San Diego Regional Chamber of Commerce is pushing for the upcoming USMCA (T-MEC) review to include provisions guaranteeing funding for Tijuana River basin sanitation and binational environmental infrastructure, rather than creating a standalone chapter on the river itself. Kenia Zamarripa, the Chamber’s VP of Public and International Affairs, told the Grupo Madrugadores that the organization has lobbied U.S. congressmembers, senators, and federal officials to secure treaty language supporting programs like those run
by the North American Development Bank (NADBank), building on an earlier USMCA environmental chapter that unlocked hundreds of millions of dollars for Tijuana River cleanup. She emphasized prioritizing the 18 identified binational projects aimed at reducing wastewater discharges into the U.S. before pursuing new initiatives, warning that unresolved cross-border pollution threatens the region’s competitiveness by deterring foreign investors and could complicate future trade negotiations if left unaddressed.
SOURCE: INDUSTRIAL NEWS BC
NEWS BY STATE SONORA
Index Nogales, formerly the Sonora Maquiladora Association, is marking 50 years as the strategic link between industry, government, academia, and the community in Nogales, Sonora, now representing over 106 companies and more than 48,000 direct jobs. President Daniel Rivera credits the region’s competitiveness to a combination of proximity to U.S. supply chains, five decades of export manufacturing experience, a skilled workforce, and strong institutional collaboration, with growth now concentrated in higher-value medical, aerospace, and electronics manufacturing that has pushed the organization to invest in early-stage talent development, in-
cluding robotics equipment for local high schools and university scholarships. Sustainability has become a core focus through dedicated committees on best practices and regulatory compliance, while the organization’s social arm, Proyecto Nogales, has mobilized over $2.1 million since 1988 for community health, education, and infrastructure projects, including the UMF 05 AMS-IMSS clinic built with Mexico’s Social Security Institute. Looking ahead, Rivera envisions deeper industry partnerships, greater influence on public policy, and continued talent development to keep Nogales among North America’s leading export manufacturing hubs.
SOURCE: MEXICO INDUSTRY
NEWS BY STATE CHIHUAHUA
Canacintra Chihuahua and the Chihuahua Municipal Government have launched the “Chihuahua Capital Industry Guide 2026,” a directory-style tool designed to strengthen business networking, attract investment, and bolster local supply chains by compiling strategic information on the city’s companies, productive sectors, and industrial capabilities. José Jordán Orozco, the city’s director of Economic Development and Competitiveness, described the guide as a coordinated effort among government, industry, academia, and business organizations to draw new investment and support local suppliers, positioning Chihuahua Capital as one of Mexico’s leading industrial hubs for national and international companies. The guide is now available at canacintrachihuahua.org.mx.
SOURCE: PRO CHIHUAHUA
NEWS BY STATE
NUEVO
LEON
Amid uncertainty over the USMCA (T-MEC) review and U.S. tariff policy, Rogelio Garza, executive president of the Mexican Automotive Industry Association (AMIA), said the impact is being felt across all states with automotive industry presence, though KIA’s announcement of a $649 million investment to produce its EV3 electric SUV in Pesquería, Nuevo León, serves as a counterweight and a vote of confidence in the northeast region. KIA already had over 250 suppliers in Mexico before this investment, which Garza called the result of 30 years of building competitive supply chains, noting that Mexico’s automotive industry now handles engineering, design, and advanced manufacturing decisions, not just assembly, thanks to USMCA, skilled talent, and support from the Secretariat of Economy’s clear electromobility policy. While EV adoption has slowed partly due
to reduced U.S. support for electromobility, Garza called the shift toward electrification irreversible, noting the EV3 brings to six the number of next-generation vehicles now made in Mexico. The investment also includes charging infrastructure: KIA provides a home charger and installation with each EV3 in coordination with federal agencies and utility CFE, and is building public charging networks with 13 partner companies, starting with 84 connectors in Monterrey and expanding to Mexico City and Guadalajara, according to Alejandro Medina, KIA México’s director of Aftersales and Experience.
SOURCE: EL ECONOMISTA
NEWS BY STATE
GUANAJUATO
Fibra Mty (BMV: FMTY14) has completed the acquisition of a Class A industrial property in Guanajuato for approximately $24.1 million, with a rentable area of roughly 28,000 m² built on a 96,500 m² lot, located within the Bajío manufacturing corridor, a key hub for Mexico’s automotive production and export industry. The deal was structured as a sale-and-leaseback under a 10-year absolute Triple Net (NNN) lease, denominated in dollars with annual CPI-linked increases, fully occupied by a global company that is a key player in the automotive supply chain; the property is expected to generate about $2.1 million in Net Operating Income over its first 12 months. The transaction was paid entirely from available cash, with $21.1 million disbursed at closing and a deferred $3.0 million payment due in two years pending contractual conditions, reflecting Fibra Mty’s strategy of selective acquisitions to grow cash flow per CBFI while strengthening its tenant credit quality in key Mexican industrial markets.
SOURCE: CLUSTER INDUSTRIAL
NEWS BY STATE QUERETARO
Querétaro is aiming to expand its aerospace manufacturing ecosystem after identifying between 50 and 60 companies with investment potential during a recent prospecting tour, with SEDESU head Marco Antonio Del Prete Tercero noting continued interest from existing players like Safran and Bombardier, and highlighting that aerospace faces less trade-related scrutiny than the automotive sector, creating openings for Mexico, the U.S., and Canada. A key focus is attracting international suppliers looking to locate near their clients, while talent development plays a central role: the Universidad Aeronáutica en Querétaro (UNAQ) signed two new agreements to certify workforce skills, including specialized welding relevant to aerospace manufacturing and maintenance. The tour also led to investment in modernizing a testing laboratory to strengthen evaluation and validation capabilities, alongside talks with Bombardier’s Defense division on potential collaboration, as the state now moves into individual follow-up with the identified companies to convert prospects into confirmed operations.
SOURCE: TU INTERFAZ DE NEGOCIOS
NEWS BY STATE
MEXICO CITY
• Mexico City reinforced its role as the coordinator of metropolitan development following the 2026 meeting of the Metropolitan Development Council, led by Mexico City Mayor Clara Brugada alongside the governors of the State of Mexico, Hidalgo, and Morelos, as well as federal authorities.
• The meeting focused on advancing a coordinated development agenda for one of the country’s most important economic regions.
• Authorities approved the public consultation process for updating the Metropolitan Land Use Program—the first revision in 28 years—and agreed to strengthen collaboration on mobility, water management, environmental
protection, public security, and fiscal coordination.
• Brugada also proposed initiatives including a metropolitan mobility and climate strategy, enhanced regional security coordination through a Metropolitan C5 and police force, and mechanisms to improve tax collection across state boundaries.
• The agreements aim to provide a more integrated governance framework for infrastructure planning, logistics, and sustainable urban development across the metropolitan area, which is home to nearly 23 million people and represents one of Mexico’s most significant industrial, commercial, and economic hubs.
SOURCE: PUBLÍMETRO
INVESTMENT NEWS
North México
INVENTEC — GROUNDBREAKING
Inventec, the Taiwanese electronics and server manufacturer, laid the first stone on July 31 for a major expansion of its operations in Ciudad Juárez, Chihuahua, backed by a US$450 million investment expected to create up to 6,000 high-value jobs. The new facility will focus on advanced manufacturing for artificial intelligence, high-performance servers and semiconductor-related technologies, deepening the company’s footprint in a region where it already operates.
FUJI OOZX — ANNOUNCEMENT
Fuji OOZX, the Japanese auto-parts maker (engine valves), announced on July 30 a US$10.2 million expansion of its subsidiary Fuji OOZX Mexico in Guanajuato, following board approval on July 27. The project will raise the plant’s capacity to 2.3 million parts per month, with construction starting in August 2026 and operations expected by October 2027, strengthening its position in the USMCA-compliant North American auto supply chain.
KIA — ANNOUNCEMENT
Kia, the South Korean automaker, announced on July 29 an investment of US$649 million to produce its EV3 electric SUV at its existing plant in Pesquería, Nuevo León — the first fully electric vehicle Kia will manufacture in Mexico. The expansion of the facility, which has operated since 2016, is expected to create around 1,500 direct jobs by 2030 and marks the relocation of EV3 production from South Korea, reinforcing Nuevo León’s role as an EV manufacturing hub amid North American tariff pressures.
INVESTMENT NEWS
Central México
HANSOL TECHNICS — ANNOUNCEMENT
Hansol Technics, the South Korean electronics manufacturer, announced on July 31 that it will establish a manufacturing subsidiary in San Luis Potosí to serve the North American automotive market. The new operation will produce automotive electronic components — including transmission electronic units, LED interior and exterior lighting systems, and wireless charging modules — as part of a strategy to strengthen the company’s global manufacturing and logistics network.
CLOUDHQ — ANNOUNCEMENT
CloudHQ, the U.S.-based hyperscale data-center developer, announced on July 30 a US$4.8 billion plan to build six strategic data centers in Querétaro — up from the US$3.6 billion it first committed in 2023. The campus, unveiled at President Sheinbaum’s morning conference under the Plan México umbrella, is expected to generate around 7,200 highly specialized construction jobs and 900 permanent positions, cementing Querétaro as Mexico’s leading data-center hub for cloud and AI infrastructure.
T+H AUTOMOTIVE — OPENING
T+H Automotive, the German auto-parts manufacturer, inaugurated on August 3 an expansion of its plant in Tlajomulco de Zúñiga, Jalisco, with an investment of nearly MX$90 million. The project adds a new intermediate-tube production line built on proprietary technology and developed over two years with international specialists and Mexican technicians, prioritizing domestically sourced materials and strengthening the North American automotive supply chain.
National
UFLEX — OPENING
Uflex, the India-based flexible-packaging company, started commercial production on July 31 at its new Mexican plant — the first woven polypropylene (WPP) bag facility in the country — with annual capacity of 80 million bags aimed at the growing North and South American pet-food packaging market. The plant is tied to a roughly US$50 million investment announced in 2025.
SOURCES: PRO CHIHUAHUA, EXPANSION, CLUSTER INDUSTRIAL, INDUSTRY NEWS MX, MEXICO NEWS DAILY, LA CRONICA, TIP RANKS.
WHAT’S NEW IN PRODENSA?
PRODENSA INSIGHTS
Section 301 Tariffs: What They Mean for Mexico
As Section 301 tariffs continue to reshape global trade, manufacturers are reassessing sourcing strategies and supply chain resilience. For many companies, Mexico has emerged as a strategic alternative for serving the North American market while reducing exposure to tariff-related risks.
This article explains how Section 301 tariffs are influencing investment decisions, why Mexico is benefiting from shifting trade patterns, and what manufacturers should consider when adapting their regional manufacturing strategy.
• How Section 301 tariffs are changing global sourcing
• Why Mexico is gaining strategic importance
• What manufacturers should evaluate moving forward
China, Nearshoring, and the New Geopolitics of North American Trade
The relationship between China, Mexico, and the United States is redefining the future of global manufacturing. As geopolitical priorities evolve, companies must balance resilience, market access, and compliance while adapting their supply chain strategies.
This editorial explores how nearshoring is reshaping North American trade, the role China continues to play in global manufacturing, and why Mexico has become a strategic bridge for companies navigating an increasingly complex geopolitical landscape.
• How geopolitics is reshaping North American trade
• Why Mexico is central to the next phase of nearshoring
• What manufacturers should consider in a changing global environment
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