After the barrage of negative coverage on the judicial election, things heated up this week. ‘Claudia Sheinbaum came out and encouraged more protests in L.A., and I condemn her for that’, said the U.S. Homeland Security Secretary, Kristi Noem, addressing reporters in the Oval Office next to President Trump on Tuesday. President Sheinbaum quickly denied the accusations, but some damage was done. (The accusation stemmed from comments Sheinbaum made in late May about ‘mobilizing’ – to lobby Congress on the proposal to tax remittances, which were then taken out of context by online commentators.) Then on Wednesday an explosive report by Reuters alleged that ‘the Trump administration is pressuring Mexico to investigate and prosecute politicians with suspected links to organized crime, and to extradite them to the United States’, according to sources. President Sheinbaum once again quickly denied it. Later that day she hosted Deputy Secretary of State Christopher Landau for what was described as a “courtesy meeting”. How all of this will impact the rapport Sheinbaum had built with President Trump remains an open question.
On the use of the Mexican flag by some of the protesters in LA, the NYT noted it was seen as a ‘bad strategy’, even for some on the left, while those waving it described it as a ‘symbol of defiance against Mr. Trump’s immigration policies’. Clearly, a highly controversial subject.
Moving on to cartel news, the Financial Times reported that up to a quarter of the country’s fuel consumption, worth billions, is smuggled or stolen fuel. Cartels have turned fuel trafficking into a fine art, moving diesel and gasoline across the U.S. border by trucks, trains, and ships. Meanwhile, the NYT delved into the ‘ruinous burdens’ small businesses on the border face following the designation of cartels as terrorist organizations. Among other measures, currency exchanges must now report transactions above $200 – a small fraction of the decades-old previous threshold of $10,000.
Business headlines were mixed. On the one hand, GM said it would move some of its SUV production from Mexico to the U.S., and Michelin announced the closure of an ‘obsolete’ plant in Querétaro (both companies maintain significant capacity in the country). More cheerfully, Heineken announced it will invest “$2.75 billion” in different projects in Mexico, including a 4-million hectoliter plant in Yucatán (which it had previously announced and in fact began construction in 2023 – such is the nature of investment announcements before the President these days).
Shifting gears, the AP’s Jenna Fryer profiled Daniel Suárez, Mexico’s most successful NASCAR driver, as he balances contract uncertainty with hopes of a home victory. Sunday’s race at Autódromo Hermanos Rodríguez will be the first international Cup Series event in 25 years.
Lastly, on this week’s MexMoves, Damian and Eduardo speak with former Education Secretary Aurelio Nuño and Juan Rebolledo of Lotus Education, on what’s at stake and what can be done to close Mexico’s yawning education gap. They also discuss GM’s production shifts from Mexico to US; Heineken’s investment plans; and how Hispanics in the US are pulling back. You can listen to it here.
Photo of the Week
Flags of Latin American nations emerged as protest emblems. Trump officials have cast flag wavers as insurrectionists and seemed to assume that they are not U.S. citizens. But for many who are, the flags represented pride in their roots and solidarity with immigrants targeted for deportation. Photo by Mark Abramson for The New York Times.
FOREIGN PRESS COVERAGE
Mexico’s Sheinbaum denies Noem’s allegation that she encouraged violence in LA
10/06/2025, LA Times, Patrick J. McDonnell
US pushes Mexico to prosecute, extradite politicians with cartel ties
11/06/2025, Reuters, Diego Oré
Mexico’s president denies Reuters report on US push to investigate narco politicians
12/06/2025, Reuters, Staff
12/06/2025, Latin Times, Demian Bio
Mexican Flags Have Become Republican Fodder, but Protesters Keep Waving Them
11/06/2025, The New York Times, Shawn Hubler and Orlando Mayorquín
How smuggled US fuel funds Mexico’s cartels
10/06/2025, The Financial Times, Christine Murray
Trump’s Cartel Crackdown Imposes ‘Ruinous Burdens,’ Border Businesses Say
12/06/2025, The New York Times, Zach Montague
GM Plans $4 Billion Investment to Boost U.S. Manufacturing
10/06/2025, The Wall Street Journal, Christopher Otts
Tire maker Michelin announces plant closure in central Mexico
09/06/2025, Reuters, Staff
Heineken to invest over $2.7 billion in Mexico through 2028
11/06/2025, Reuters, Raul Cortes and Aida Pelaez-Fernandez
NASCAR’s Mexico City race: Daniel Suarez balances racing at home with uncertainty over contract
12/06/2025, AP, Jenna Freyer
Download PDF: MI-MexicoForeignPressChatter-061325