Tariff headlines stayed front and center following President Trump’s renewed threats against Mexico, since, he claims, the country is still not doing enough to stop the flow of drugs into the U.S. While details are not official yet, The New York Times quoted sources stating that the new taxes would replace, not add to, the previous 25% levies and only apply to non USMCA-compliant goods. President Sheinbaum responded calmly, stating a deal can be reached, but also warning that ‘we have to have alternatives’; that could include increased cooperation with Canada, reported Reuters.
Despite the volatile last few months, Bloomberg highlighted the Mexican peso has emerged as ‘an unlikely winner’, rallying 11% this year, helped by high interest rates and repeated delays to tariffs: ‘Markets know the drill’, summarized XP’s strategist Marco Oviedo, while cautioning that downside risks remain. Bloomberg also reported on another unexpected benefit: Mexican consumers now have access to more Chinese cars, as tariffs make them prohibitively expensive for the U.S. market.
While technical trade negotiations continue, security remains a source of bilateral tension, particularly due to the ongoing courtroom drama in the Ovidio Guzmán case. The LA Times covered the ‘bitter public dispute’ between Jeffrey Lichtman, Guzmán’s lawyer, and President Sheinbaum, which has ‘raised speculation’ that Mexican officials might be exposed as part of a plea deal. The New York Times, for its part, reported that President Sheinbaum continues to demand proof, while criticizing the American government: “what happened to not negotiating with terrorist groups?”
Still on security, two articles from the AP caught our attention: first, a detailed story on the rise of extortion, and how it has forced increasing numbers of small businesses to close; damages are calculated at over a billion dollars. Also worryingly, Security Secretary Omar García Harfuch said cartels have been recruiting former Colombian soldiers, who are suspected of being behind a recent mine attack that killed eight Mexican soldiers.
Gentrification in Mexico City continued to gather headlines, following the announcement of a series of measures by Mayor Carla Brugada, including rent controls. And in yet another source of cross-border tension, the BBC delved into the still-pressing water shortage in northern Mexico.
Shifting gears, the New York Times profiled the photogenic Sonoran Desert toad, whose psychedelic secretions have fueled a global demand among spiritual seekers and underground healers. This surge in popularity has led to rampant toad trapping, habitat loss, and population collapse. Scientists warn that, without urgent conservation efforts and a shift toward synthetic alternatives, the species could face extinction.
Lastly, on this week’s MexMoves, Damian and Eduardo discuss AI adoption in Mexico with tech founders Julián López Portillo of Senzai and Mauricio Sepúlveda of Arkham Technologies. They also evaluate the Liga MX ownership changes as FIFA cracks down on multiple team ownership, as well as the impact of Trump’s latest tariff threats and the new duties on Mexican tomato exports to the U.S. Finally, they look at the recent gentrification protests in Mexico City and what if anything they mean for tourism in the City ahead of the 2026 World Cup. You can listen to it here.
Photo of the Week
Trapping appears to have decimated several populations of Sonoran Desert toads in Mexico and sent others into steep decline, researchers say. Photo by Rodolfo Vega Littlewood for The New York Times.
FOREIGN PRESS COVERAGE
After Months of Negotiations, Trump Imposes More Tariffs on Mexico
07/12/25, The New York Times, Alan Rappeport
Mexico’s ‘Cool-Head’ Approach Tested by Latest Trump Threat
07/14/25, Bloomberg, Eric Martin and Maya Averbuch
For Mexico, Trump’s Focus on Fentanyl Brings New Tariff Blow
07/12/25, The Wall Street Journal, José de Córdoba and Santiago Pérez
Mexico pledges action should U.S. talks fail by August tariff deadline
07/15/25, Reuters, Ana Isabel Martinez and Brendan O’Boyle
Mexico plans stronger trade collaboration with Canada after Trump tariff threats
07/16/25, Reuters, Kylie Madry
Mexico’s Peso Becomes Unlikely Winner in Trump’s Trade War
07/14/25, Bloomberg, Kelsey Butler and Maria Elena Vizcaino
Made-in-China Chevys for $17,000 Are Winning Fans in Mexico
07/17/25, Bloomberg, Amy Stillman and David Welch
Case of ‘El Chapo’ son cooperating with U.S. prosecutors roils Mexico
07/16/25, Los Angeles Times, Patrick J. McDonnell
Son of El Chapo Pleads Guilty to Sweeping Drug Charges
07/11/25, The New York Times, Alan Feuer and Robert Chiarito
Mexico has taken steps to curb drug trade and illegal migration. Trump says it’s not enough.
07/12/25, The New York Times, Annie Correal and Emiliano Rodríguez Mega
He closed his store after years of threats. Why Mexico’s extortion problem is getting worse
07/11/25, AP, Fabiola Sánchez
Mexico’s security chief says drug cartels are recruiting former Colombian soldiers
07/10/25, AP, Staff.
Mexico City Pledges to Fight Gentrification in Protest Aftermath
07/16/25, Bloomberg, Alex Vasquez
Backlash against Mexico City gentrification echoes global anger at overtourism and rising rents
07/15/25, The Guardian, Oscar Lopez
The deepening water shortage row between the US and Mexico
07/13/25, BBC, Will Grant
These Toads Have Psychedelic Powers, but They’d Prefer to Keep It Quiet
07/10/25, The New York Times, Rachel Nuwer
Download PDF: MI-MexicoForeignPressChatter-071825