Trade tensions and tariff implications again dominated headlines this week. While Mexico remains in a relatively more favorable position (particularly after President Trump threatened tariffs on Brazil and Canada), it’s not been entirely unaffected. On Wednesday, the U.S. announced 50% tariffs on copper; Mexico and Chile said they would seek to redirect exports, likely to China. Then on Thursday the WSJ reported that American officials once again halted Mexican cattle imports ‘just days after the U.S. said it was resuming imports’ after a new screwworm pest was detected. President Sheinbaum characterized the decision as ‘exaggerated’. Bloomberg also reported tomato prices are set to spike in the U.S. in the coming days unless a decades-old deal with Mexico is extended.
Despite the setbacks, the New York Times highlighted how some Mexican firms are in fact benefitting as U.S. companies seek to replace Asian imports with new North America-based suppliers. “Bringing in supplies from [Asia] was financially viable because of the low costs. But the current situation is pushing us to think, ‘Hey, why not [manufacture things here]?’”, said Xavier Casas, a Monterrey-based vice president at Danish industrial manufacturer Danfoss.
The anti-gentrification (turned anti-U.S.) protests in Mexico City were also widely covered. The New York Times noted the episode ‘is part of a broader movement against mass tourism that has cropped up in increasingly unaffordable cities around the world, including a recent wave of protests in Italy, Portugal and Spain’.
On the matter of U.S. accusations against Mexican financial institutions, Bloomberg reported a 45-day extension before CIBanco, Intercam and Vector are cut off from the American financial system. ‘This shows the US wants to squeeze Mexico without blowing up local financial stability overnight’, according to Haris Khurshid, CIO at hedge fund Karobaar Capital. It could always be worse, clearly. Emilio Romano, head of the Mexican banking trade group, also underscored that U.S. officials had recently indicated that ‘there were no more Mexican banks that were part of the current investigation’.
Bloomberg also interviewed incoming Chief Justice Hugo Aguilar. Mr. Aguilar said one of his priorities would be to ‘ensure fairness across the board’. Regarding high-profile tax disputes between the government and large companies, he pledged a “strict application of the law […] We just apply the rule, period. Two plus two equals four, it’s very technical.” For its part, the Financial Times reported on the production ramp-up at the Dos Bocas refinery, following long delays and cost overruns. Despite the progress, the tone was less than fully optimistic. ‘You will get a little more energy certainty but at an extremely high cost and potentially huge overhead’, said John Padilla, partner at energy consultancy IPD Latin America, summarizing matters.
Shifting gears, The Athletic profiled Gilberto Mora, the new Mexican soccer prodigy, following Mexico’s victory against the U.S. on Sunday’s Gold Cup final. Mora became the youngest player ever to lift an international trophy at 16 years and 265 days, a record previously held by Spain’s Lamine Yamal and the legendary Pelé. In just a year, Mora has dazzled fans with fearless dribbling, pinpoint assists, and audacious goals, all delivered with a swagger beyond his years.
Lastly, on this week’s MexMoves, Damian and Eduardo sit down with Gabriel Casillas, Chief Latin America Economist at Barclays, who breaks down the drivers behind Mexico’s stronger than expected economic performance. Plus: delays in US sanctions on three banks, lithium letdowns, Mercado Pago’s new app, cartel-fueled fuel fraud, and Cancun’s tourist troubles. You can listen to it here.
Photo of the Week
A man points to his Mexican ID to prove his nationality as people protest against gentrification, as the increase in remote workers has risen prices and increased housing demand in neighborhoods like Condesa and Roma, in Mexico City, Friday, July 4, 2025. Photo by Jon Orbach for The Associated Press.
FOREIGN PRESS COVERAGE
Chile, Mexico look to new markets ahead of Trump copper tariffs
07/09/25, Reuters, Daina Beth Solomon, Fabian Cambero and Ana Isabel Martinez
Flesh-Eating Fly Halts Mexican Cattle Imports—Again
07/10/25, Wall Street Journal, Patrick Thomas
Mexico president says US decision to close border over screwworm is ‘exaggerated’
07/10/25, Reuters, Ana Isabel Martinez and Aida Pelaez-Fernandez
A Tomato Fight With Mexico Is Set to Boost US Prices Nearly 10%
07/08/25, Bloomberg, Kristina Peterson
Caught Between Tariffs and China, Mexico Adapts to an Unpredictable U.S.
07/06/25, The New York Times, Emiliano Rodríguez Mega
The Mexican Businessman Grateful for Trump’s Tariffs
07/08/25, The New York Times, Emiliano Rodríguez Mega
As a Tourist Influx Makes Prices Soar, Hundreds Protest in Mexico City
07/05/25, The New York Times, Pranav Baskar
Why Are Protesters in Mexico City Angry at Remote Workers?
07/07/25, The New York Times, Emiliano Rodríguez, Paulina Villegas and Simon Romero
Mexican Bankers Put on Brave Face in Wake of US Laundering Blitz
07/10/25, Bloomberg, Michael O’Boyle
Mexico’s Next Top Judge Says Company Taxes Should Be Clear Cut
07/07/25, Bloomberg, Alex Vasquez and Maya Averbuch
Can a $20bn refinery make Mexico’s energy ‘dream’ come true?
07/08/25, Financial Times, Christine Murray
Analysing Gilberto Mora, Mexico’s 16-year-old wonderkid who broke a Lamine Yamal record on Sunday
07/08/25, The Athletic, Thom Harris
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