April 4 -11, 2025
HOT TOPICS:
Trump reducesreciprocal tariffsfor90 days
MEXICO PRESENTS PROGRESS IN SECURITY ISSUES
Mexico’s Security Cabinet reported key operations across several states as part of its National Security Strategy, which includes intelligence strengthening and inter-agency coordination Authorities dismantled drug labs, destroyed over 170 drug plantations, and seized large quantities of fentanyl, weapons, and stolen fuel Dozens of individuals tied to organized crime were arrested Simultaneously, the U S Department of Homeland Security issued its first environmental law waiver of Trump’s second term, allowing expedited construction of 4 km of border wall in southern California This move bypasses over 20 environmental regulations and drew criticism from environmentalists, who warn of severe ecological damage. The decision comes amid declining illegal crossings due to stricter asylum policies and increased Mexican enforcement along the border
Source: LATINUS
President Trump has announced a 90-day pause on reciprocal tariffs for most U.S. trading partners, excluding China, in an attempt to calm volatile markets The S&P 500 reacted positively, surging 9 5%, its strongest one-day gain since 2008 While the executive order is yet to be published, the pause is intended to allow space for negotiations Section 232 tariffs on steel, aluminum, and autos remain unchanged. Mexico and Canada are still exempt from reciprocal tariffs but remain subject to separate 25% tariffs tied to fentanyl and migration concerns for non-USMCA-compliant goods In contrast, tariffs on Chinese imports have risen sharply to 125%, escalating tensions. China responded by increasing its tariffs on U.S. goods from 84% to 125%, denouncing the U.S. measures as “economic bullying ” President Xi and other officials warned of a potential global recession, criticizing the U.S.'s tariff strategy and vowing retaliation. Beijing also suspended several agricultural imports and imposed more export controls on rare earth minerals, affecting U.S. tech industries
Simultaneously, Trump threatened further tariffs and possible sanctions on Mexico over a longstanding water dispute. Citing violations of a 1944 treaty, Trump accused Mexico of withholding water from Texas farmers President Claudia Sheinbaum admitted drought conditions have limited Mexico’s ability to comply but expressed a willingness to negotiate. Overall, while the temporary tariff pause seeks to stabilize markets, the moves against China and Mexico highlight growing international trade tensions The uncertainty surrounding ongoing negotiations adds further instability to the global economic outlook
Source: NEW YORK TIMES
The U S Senate confirmed Ron Johnson, a retired colonel, former CIA officer, and exsenator from Wisconsin, as the new U S ambassador to Mexico Appointed by President Trump, Johnson previously served as ambassador to El Salvador, where he prioritized migration issues. His nomination has stirred controversy due to past comments suggesting potential U S military action against drug cartels in Mexico, which President Claudia Sheinbaum firmly rejected. Despite tensions, U.S. officials, including Senator Jim Risch, expressed optimism that Johnson’s leadership will strengthen bilateral relations His appointment signals a tougher U S stance on security and migration, potentially complicating cooperation with Mexico
Source: LA JORNADA
RON JOHNSON IS APPOINTED AS NEW US AMBASSADOR IN MEXICO
HOT TOPICS:
PresidentSheinbaum attendsthe CELAC Summit
At the IX CELAC Summit in Tegucigalpa, Honduras, Latin American leaders, including Mexico’s Claudia Sheinbaum, Brazil’s Luiz Inácio Lula da Silva, and Colombia’s Gustavo Petro, emphasized the urgent need for regional unity in response to Donald Trump’s revived trade war While the U S imposed a 10% tariff on all countries (except China at 125% and USMCAprotected exports from Mexico and Canada), the summit became a platform for leaders to criticize unilateralism and advocate for economic integration. Sheinbaum proposed organizing a summit focused on Latin American economic well-being, highlighting shared prosperity and sovereignty This proposal, applauded by attendees, aims to strengthen regional cooperation in areas such as trade, technology, clean energy, and biodiversity Lula echoed the necessity for Latin America to define its role in the evolving global order, while Petro, assuming CELAC’s rotating presidency, outlined priorities including climate action, migration policy, and regional interconnection
Implications for Mexico’s economy are significant. While Mexico currently enjoys tariff exemptions due to USMCA, its role as a regional leader could enhance its geopolitical influence and economic partnerships Greater Latin American integration may diversify Mexico’s trade dependencies and open opportunities for regional supply chains. However, balancing this with its preferential U S trade access will require nuanced diplomacy Ultimately, Mexico’s leadership in CELAC may allow it to shape regional responses to global economic shifts while maintaining its strategic bilateral ties
Source: EL ECONOMISTA
KIA BEGINS PRODUCTION IN NUEVO LEÓN
KIA has begun production of the 2026 K4 Hatchback at its Pesquería plant in Nuevo León, marking a key milestone in its portfolio renewal in Mexico. The model replaces the KIA Forte and complements the K4 Sedan, already in production since March 2024. Featuring a “floating roof” design, full-width LED taillights, and increased cargo space, it shares platforms and engines with the sedan version. KIA’s supply chain includes 84 Tier 1 local suppliers, with 93% national content. This move strengthens the plant’s role as a strategic manufacturing hub for North America and boosts Nuevo León’s position in the automotive industry.
Source: MEXICO INDUSTRY
ENERGY PLAN IS PRESENTED
On April 9, 2025, Mexico's Secretary of Energy, Luz Elena González, presented a major energy plan to enhance national self-sufficiency amid potential U S tariffs The plan, part of the broader Plan México, involves a total investment of over 624 billion pesos, aiming to add 22,674 megawatts of public generation capacity It includes 11 immediate operational projects and integrates private clean energy investments totaling over 6,400 megawatts. Additionally, 42,221 electrification projects will be implemented between 2025 and 2028. The initiative supports regional industrial zones and emphasizes clean, reliable energy access as a matter of justice and national development
Source: INFOBAE
INDEX NATIONAL APPOINTS NEW HEAD
The National Council of the Maquiladora and Export Manufacturing Industry (Index Nacional) appointed Jael Durán as its new general director. Durán brings strong expertise in trade and diplomacy Her academic background and skills in public relations and institutional affairs will be key in strengthening international ties and advancing Mexico’s export manufacturing sector
Source: MEXICO INDUSTRY
HOT TOPICS: Legislative and Regulatory Issues:
LABOR
INITIATIVE TO AMEND THE FEDERAL LABOR LAW
Presented by: Dep Napoleón Gómez Urrutia (MORENA)
Objective: Proposes increasing severance pay from 20 to 90 days per year worked in cases of dismissal, strengthening worker protections and compensation rights.
Status: 2025-04-08 – Published in the Parliamentary Gazette
INITIATIVE TO AMEND VARIOUS PROVISIONS OF THE ORGANIC LAW OF THE FEDERAL PUBLIC ADMINISTRATION, THE SOCIAL SECURITY LAW, THE LAW OF WORKERS IN THE SERVICE OF THE STATE, AND THE FEDERAL LABOR LAW
Presented by: Sen Amalia Dolores García Medina (National List - MC)
Objective: Establish a National Unemployment Insurance system to provide income protection and job training to individuals who have lost their employment or income sources, with eligibility based on prior contributions or caregiving responsibilities
Status: 2025-04-08 - Published in the Parliamentary Gazette
INITIATIVE TO AMEND ARTICLE 4 OF THE CONSTITUTION
Presented by: Parliamentary Group of the National Action Party (PAN)
Objective: Mandate the creation of unemployment insurance for all economically active workers over 18 in the formal labor market, providing financial support when they lose their jobs.
Status: 2025-04-09 - Published in the Parliamentary Gazette
INDUSTRY
INITIATIVE WITH A BILL TO ENACT THE ECONOMIC BOOST AND EMERGENCY LAW
Presented by: Sen. Ricardo Anaya Cortés (LNal - PAN)
Objective: This law aims to establish the declaration of an economic emergency as a mechanism to quickly and efficiently address a contraction in the country’s economic activity caused by extraordinary internal and/or external phenomena.
Status: 2025-04-08 - Published in the Parliamentary Gazette
Initiative to Promote the Productive Semiconductor Industry
Presented by: Parliamentary Group of the Ecologist Green Party of Mexico (PVEM) Objective: Promote investment in infrastructure, research, and technological development in strategic sectors and industries linked to technological innovation, information and communication technologies, and the production of semiconductors, superconductors, and integrated electronic circuits.
Status: Published in the Parliamentary Gazette on 2025-0410
Point of Agreement on Automotive Sector Imports from the People’s Republic of China
Presented by: Deputy José Guillermo Anaya Llamas (PAN)
Objective: Requests the Ministry of Economy to analyze the convenience, feasibility, and timeliness of establishing proposed tariffs on automotive sector imports from the People’s Republic of China, and subsequently recommend corresponding tariff modifications to the Federal Executive.
PUBLIC ADMINISTRATION
INITIATIVE WITH A BILL TO ENACT THE OFFICIAL IDENTIFICATION LAW
Presented by: Sen. Karina Isabel Ruiz Ruiz (LNal - MORENA)
Objective: This law seeks to standardize the recognition of official identification documents in Mexico, ensuring equal access for all individuals to recognized IDs for official and private procedures, complying with privacy legislation.
Status: 2025-04-09 - Published in the Parliamentary Gazette
INITIATIVE WITH A BILL TO ADD CHAPTER VI BIS TITLED "OF TAXPAYERS AFFECTED BY THE IMPOSITION OF TARIFFS ON IMPORTS"; AND ARTICLE 192 BIS OF THE INCOME TAX LAW
Presented by: Parliamentary Group of the National Action Party
Objective: This initiative proposes a fiscal incentive for income tax taxpayers whose earnings come from exports affected by tariffs imposed by another country. The incentive consists of applying a tax credit equivalent to 30% of the total expenses incurred for tariff payments during the fiscal year, which can be applied against income tax owed The credit is non-cumulative and valid only while the tariff remains in effect
Status: 2025-04-08 - Published in the Parliamentary Gazette
