Issuu

July 25th - August 1st, 2025

Hot Topics

MEXICOGETS 90-DAY BREATHING ROOM

Mexico secured 90 days from new tariffs after a call between Presidents Sheinbaum and Trump. The extension delays the implementation of a 30% tariff on Mexican exports and paves the way for a broader trade agreement As of now, Mexico will maintain 25% tariffs on non-USMCA products, steel, aluminum & copper 50% and autos 25% Trump also claimed Mexico agreed to reduce non-tariff trade barriers and intensify security cooperation on drug trafficking and immigration, potentially hinting at undisclosed demands to target individuals tied to organized crime.

Mexico's extension contrasts with Canada’s situation, where Prime Minister Carney criticized Trump’s unilateral 35% tariffs. Meanwhile, Mexico’s negotiation team has achieved a better outcome in its trade negotiations Nevertheless, challenges persist Trump’s new copper tariffs under Section 232 will affect Mexico, and uncertainty remains as the US pushes its new industrial policy. Furthermore, the EU-US 15% tariff trade agreement could make Europe have a comparative advantage. The next 90 days could be critical as Mexico must comply with possible security demands and trade pressures while preserving its current export advantage.

Source: THE WHITE HOUSE

US DISARMS CJNG ARMS DEAL

USDELEGATIONMEETSWITHPRESIDENT SHEINBAUM

President Sheinbaum held two meetings with bipartisan delegations from the US Congress and Ambassador Johnson. These encounters emphasized cooperation on border security, migration, fentanyl and cartel related issues. Lawmakers praised Sheinbaum's commitment to strengthening bilateral ties and reforming migration laws to benefit Mexican workers and the economy The meetings amid escalating trade tensions, aimed to reaffirm diplomatic dialogue and align strategic goals President Sheinbaum further stated Mexico’s concern for its migrants The meetings highlighted shared priorities and Mexico's role as a reliable ally in security, trade, and regional development.

Source: HOUSE COMMITTEE ON FINANCIAL SERVICES

A recent US investigation dismantled an international arms trafficking network supplying weapons to Mexico’s CJNG cartel. This action could show a stronger security cooperation, which has increasingly targeted cartel operations and transnational crime. Also, President Sheinbaum’s alignment with US efforts could be very important in future trade negotiations, particularly as tensions rise over potential Trump's tariffs. The US sees security cooperation, like arrests and asset dismantling, as a condition for favorable trade terms. As Washington increases pressure, Mexico’s active collaboration to stop organized crime will likely be important as leverage for future trade negotiations

Source: EL FINANCIERO

Hot Topics

EU-US TRADE DEAL TAKES PLACE

Mexico's remittances fell 16% in June 2025 the steepest drop since 2012, and 5.6% less than the same period in 2024. According to Expansión, analysts attribute this fall largely to US President Donald Trump's anti-immigration policies, which have increased pressure on undocumented Mexican workers in the US, discouraging financial transfers To mitigate this impact, Mexico’s government launched the FINABIEN card, allowing electronic remittance transfers free of tariffs, unlike cash deposits, which incur a 1% fee. The government is encouraging electronic transfers through this platform, available at US consulates and via app. This initiative seeks to protect remittance flows, a very important source of foreign income, especially for low-income households in Mexico A prolonged decline in remittances could reduce domestic consumption, increase regional inequality, and strain local economies that rely heavily on these funds, highlighting the need for financial inclusion tools and bilateral coordination.

Source: EXPANSIÓN

LOGITECHTOMOVEPRODUCTIONTO MEXICO,AMONGOTHERCOUNTRIES

Logitech is accelerating its shift away from Chinabased production to reduce exposure to U.S. tariffs, which currently reach up to 30% on goods like keyboards and mice. CEO Hanneke Faber confirmed that the share of US Logitech products made in China has dropped from 40% to just over 30%, with a goal of reducing it to 10% by the end of 2025. The company is relocating production to countries including Mexico, Malaysia, Vietnam, Taiwan, and Thailand For Mexico, this could represent an opportunity to strengthen its role as a nearshoring destination, attracting investment and job creation in electronics manufacturing. Logitech’s growing B2B segment, could further enhance Mexico’s competitiveness in high-tech supply chains and regional trade.

Source: REUTERS

FEMSA LAUNCHES WORKWEEK REDUCTION PILOT

FEMSA has launched pilot programs testing 40 and 45 hour workweeks in preparation for Mexico’s upcoming labor reform, which will gradually reduce the legal workweek from 48 to 40 hours by 2030. CFO Martín Arias emphasized the importance of these pilots in gathering data to adjust staffing based on store traffic and timing Employers across Mexico will need to rethink operation structures, possibly using flexible schedules FEMSA also noted rising labor costs, partly due to a 12% minimum wage rise, and is investing in technology and scheduling strategies to boost efficiency and manage expenses.

Source: EL ECONOMISTA

Legislativeand RegulatoryIssues:

INFRASTRUCTURE

Initiative With Draft Decree To Amend And Add Various Provisions To The Quality Infrastructure Law

Presented by: Dip. Amparo Lilia Olivares Castañeda (NL - PAN)

Objective: Requires review of Official Mexican Standards on health, environment, or public safety every three years, and mandatory technical review if unchanged for over ten years, with updated technical-legal justification.

Status: 2025-07-30 – Published in the Parliamentary Gazette

PUBLIC ADMINISTRATION

Initiative With Draft Decree To Amend Various Provisions Of The Federal Criminal Code

Presented by: Dip. David Azuara Zúñiga (SLP - PAN)

Objective: Seeks to increase penalties for vehicle theft and robberies against cargo and passenger transport, especially when committed with violence or using traps on federal roads.

Status: 2025-07-30 – Published in the Parliamentary Gazette

LABOR

Initiative With Draft Decree To Add A New Section Iv To Article 74 Of The Federal Labor Law, With Subsequent Sections Renumbered

Presented by: Dip. Gerardo Villarreal Solís (Dgo - PVEM)

Objective: Establishes Thursday and Friday of Holy Week (Semana Santa) as mandatory paid rest days each year.

Status: 2025-07-30 – Published in the Parliamentary Gazette

CORPORATE

Initiative With Draft Decree To Issue The Federal Law On Liability For Abuse Of Legal Personality And Piercing The Corporate Veil

Presented by: Dip. Gustavo Adolfo De Hoyos Walther (PlurMC)

Objective: Proposes a new federal law to combat abuse of corporate structures used to evade legal obligations or harm third parties. It sets clear criteria and legal presumptions to allow judges to pierce the corporate veil in justified cases, ensuring legal certainty and protecting honest economic actors.

Initiative With Draft Decree To Amend Article 123, Section A, Clause Vi Of The Political Constitution Of The United Mexican States

Presented by: Parliamentary Group of Movimiento Ciudadano

Objective: Proposes that the general minimum monthly wage must equal at least the cost of two basic baskets and cannot be adjusted below inflation rates.

Status: 2025-07-30 – Published in the Parliamentary Gazette

NOTE:

These initiatives were presented during the Extraordinary Period by the Permanent Commissions. Meaning that they would have to be referred to Congress on the next Legislative Period if they were to be approved.