Weekly Report - 15.08.25 by PRODENSA

August 8-15, 2025

Hot Topics

PROTECTION FOR THE MEXICAN FOOTWEAR INDUSTRY

Mexico will ban temporary imports of finished footwear under the IMMEX program, imposing tariffs of at least 25% to protect industry jobs from rising Asian competition. While aimed at combating tax evasion and contraband, this protectionist shift could risk reviving an Import Substitution policy, reducing competitiveness Restricting access to cheaper inputs could hurt consumers and export-oriented firms, while shielding domestic producers from global competition may slow productivity gains

Source: GOBIERNO DE MÉXICO

NEWUNDERSECRETARYOFFINANCE

María del Carmen Bonilla, proposed as Mexico’s new undersecretary of Finance, has extensive experience in public and private finance, leading sustainable debt issuances and refinancing operations. With a background in banking and asset management, she would become the second woman in history to hold this post, overseeing debt, credit, and international financial operations

Source: EL ECONOMISTA

POVERTYNUMBERSACCORDINGTOINEGI AREUPDATED

According to the INEGI between 2018 and 2024, Mexico achieved a significant reduction in poverty, with millions of people improving their access to basic needs and income. This progress reflects policy efforts during AMLO’s administration, which helped many families rise above multidimensional poverty. Also, the rise in minimum wages helped achieve this effort However, challenges remain; poverty is still widespread, particularly in southern states like Chiapas, Guerrero, and Oaxaca, and social vulnerabilities persist Access to healthcare has deteriorated sharply, with the number of people without medical services more than doubling in six years. While educational and housing gaps have improved slightly, rising health deprivations highlight that social safety nets must be strengthened to sustain progress.

Source: INEGI

GE TO INVEST OVER $3 BILLION USD IN THE US

GE Appliances, owned by China’s Haier, will invest $3 billion to relocate production from Mexico and China to five US states, avoiding Trump’s proposed 30% tariffs on certain Mexican goods Products shifting include gas stoves from Mexico and multiple appliance lines from China. While Mexico retains a strong GE presence with 17 plants, engineering and service centers, the move highlights trade tensions and US protectionism. For Mexico, the challenge is to sustain cost, quality, and delivery advantages to prevent further production loss to the US

Source: REUTERS

Hot Topics

TRUMP ACCELERATES MEASURESONCARTELS

The Trump administration has escalated U.S. security measures against Latin American drug cartels, designating several, including Mexico’s CJNG, Tren de Aragua, and MS13, as foreign terrorist organizations According to the NYT President Trump has secretly authorized the Pentagon to plan direct military action against cartels This could mark a shift from traditional intervention, raising domestic and international legal concerns, particularly regarding sovereignty. Meanwhile, the administration argues the move is justified to combat fentanyl trafficking and other national security threats. Also, bilateral cooperation with Mexico continues. The US Embassy in Mexico highlighted the arrest of 27 CJNG members in Aguascalientes, crediting FBI and Office of Narcotics and Law Enforcement Affairs (INL) training for the success of operation Washington’s strategy also targets cartel finances, promoting collaboration with banks and financial experts to disrupt money laundering networks While Mexico’s President Claudia Sheinbaum has rejected US. military operations on Mexican soil, the intensified joint efforts reflect a deep and necessary security partnership amid Trump’s push for more aggressive cartel crackdowns.

Source: THE NEW YORK TIMES

EBRARD:"MEXICOSHOULDPAY15% TARIFFSTOSTAYCOMPETITIVE"

Mexico needs to secure US automotive export tariffs below 15% in order to maintain competitiveness against Japan, Germany, and South Korea. According to Secretary of Economy Marcelo Ebrard protecting USMCA covered goods from a 25% general tariff and preparing for the 2026 review, this will be crucial. A key strategy is developing hubs sucha as the “Puerta Logística del Bajío” in Celaya, Guanajuato, a dry port with strong rail, road, and port links Expected to attract 2,500 million pesos in investment and thousands of jobs, it will prioritize automotive manufacturing, electromobility, and logistics. This includes supporting Olinia, the new Mexican electric vehicle brand, to strengthen Mexico’s role in North America’s supply chain.

Source: LIDER EMPRESARIAL

TRUMP WARNS ECONOMIC CRISIS IF TARIFFS ARE TAKEN DOWN

The Trump administration is fighting in federal court to preserve global tariffs, warning that overturning them could cause “financial ruin” and even a Great Depression if billions in duties must be refunded. Trump has relied on a 1977 law to justify tariffs on over 90 countries, though courts have questioned its legality. Critics dispute the administration’s forecasts, noting tariff revenue is small relative to the federal budget and unrelated to Social Security or Medicare funding. A Supreme Court defeat could temporarily stop collections, provoking refund claims, and undermine Trump’s trade and political leverage, threatening recent deals with major US trading partners

Source: THE NEW YORK TIMES

Legislativeand RegulatoryIssues:

LABOR

Bill To Amend Article 132, And Add Article 993 Bis Of The Federal Labor Law

• Presented by: Rep. Gilberto Herrera Solorzano (BC –MORENA)

• Objective: Require companies with over 100 employees to hire at least 3% older adults and 3% persons with permanent disabilities, certified by a public health institution.