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1. Tense scene during another round of USMCA negotiations

Mexico and the United States concluded a new round of negotiations on the USMCA review with preliminary agreements on key issues such as steel, aluminum, substitution of Asian imports, agriculture, and payment services. During the meeting agenda, President Claudia Sheinbaum held a meeting with U.S. Trade Representative Jamieson Greer. At this meeting, Greer warned that President Trump will not be willing to proceed with reviews or even the potential renewal of the treaty if conflicts related to the 1944 Water Treaty and border security issues are not resolved; nevertheless, President Sheinbaum emphasized that those points are being addressed at parallel working tables. Finally, a fourth round of negotiations was set for September, to be held in Washington.

However, the progress of the technical dialogue coincided with a commercial juncture following the U.S. government’s announcement regarding the imposition of a 10% tariff on Mexico. The coercive measure, which encompasses a group of 60 countries, was justified by pointing to a lack of effective enforcement regarding bans on importing goods produced with forced labor. In response, Secretary of Economy Marcelo Ebrard declared that all products covered under the USMCA were excluded from said tariff rate, guaranteeing that more than 80% of Mexico’s total exports to the U.S. market were subject to this safeguard.

El Financiero: Termina tercera ronda para revisar el T-MEC con avances entre México y EU
 
El Universal: EU impone aranceles del 10% a 60 países, incluido México por fallas en el combate al trabajo forzado

2. Debate opens on the regulation of social media among mexican children

Upon instructions from President Claudia Sheinbaum, the Secretariat of Public Education (SEP) will initiate a national debate to draft a bill aimed at regulating the use of social media, cell phones, and artificial intelligence among children and adolescents. Through three national forums to be held in the states of Nuevo León, Chiapas, and Guerrero during August and September of this year, authorities will seek to assess the impact of these technologies on minors’ mental health and socio-emotional well-being. This process was described as “unpostponable” by the Secretary of Public Education, Mario Delgado, and UNESCO highlighted that more than a hundred countries already enforce similar regulations in school environments.

This regulatory trend in Mexico aligns with an increasingly restrictive international shift, evidenced by the French Parliament’s recent approval of a law banning social media access for minors under 15 and restricting mobile device usage in high schools (lycées). Thus, while the Mexican government emphasizes that the forums’ objective is not to prohibit but to promote responsible use, the global landscape reflects a growing consensus among nations to establish rigorous legal limits on screen time and digital platforms during childhood.

La Jornada: SEP debatirá a nivel nacional la regulación del uso de redes sociales e IA en niños y adolescentes
 
Político MX: Gobierno prepara iniciativa para regular uso de celulares e IA en escuelas

3. Tariff policy reconfigures asian imports with uneven effects on domestic industrycional

Mexico’s tariff package on countries without a free trade agreement—approved in December 2025 and implemented as of January of this year—led to a 23.2% drop in imports of such goods during the first half of 2026, primarily affecting countries in the Asian region: China, Taiwan, South Korea, India, and Thailand. Despite this slowdown in the flow of foreign products, which focused on sectors such as textiles and footwear, domestic production in these sectors has not yet recorded an equivalent recovery. Analysts attribute this to the fact that fiscal measures alter trade routes but do not resolve the structural lags of the local industry at their core.

Nevertheless, the automotive sector reflects the contrasts of this trade strategy. While the Secretariat of Economy highlighted a 43% reduction in vehicle imports from China during the first five months of the year, sales of Chinese brands in the Mexican market grew by nearly 30% during the first half of the year, according to a report by the Mexican Association of Automotive Dealers (AMDA). This context demonstrates that, although the tariff barrier has slowed the entry of Asian vehicles, domestic demand for these brands maintains its momentum through existing inventories or adjustments in their supply chains

Vanguardia: Aranceles impuestos por Gobierno de México funcionan; importaciones desde Asia caen 23.2 por ciento
 
Reuters: Chinese car sales in Mexico surge despite new tariffs

4. Economic indicators reflect moderation and resilience in domestic activity

During the first half of July, annual headline inflation in Mexico registered a deceleration, standing at 3.10%, favored by drops in the prices of agricultural products such as tomatoes and avocados, as well as energy products like LP gas, reported the National Institute of Statistics and Geography (INEGI). However, core inflation rate—measurement that removes volatile prices, such as fresh food and energy, to show the true long-term trend of the cost of living—remained somewhat rigid near 4% annually, due to persistent pressures in the services, health, and education sectors, as well as in air transportation and vacation packages driven by the summer holiday season.

Hand in hand with price trends, the country’s economic activity showed signs of momentum, growing 1.7% annually in June, according to estimates by INEGI itself. This monthly increase marks four consecutive months of expansion, driven mainly by the performance of services, tourism, manufacturing, and construction, shaping a scenario of gradual recovery amidst the mixed behavior of inflationary components.

Expansión: La inflación baja a 3.10% en la primera quincena de julio
 
Milenio: Economía de México creció 1.7% en junio, estima Inegi

5. Federal government executes liability management and strengthens energy infrastructure

The Secretariat of Finance and Public Credit (SHCP) finalized its third domestic debt refinancing so far this year through the issuance of 10-year Udibonos totaling 6.763 billion pesos and a complementary refinancing of 183.202 billion pesos. With this move, the federal government managed to extend the average maturity of the refinanced debt by 3.64 years, optimizing domestic liquidity conditions and smoothing the public administration’s debt maturity profile.

In line with the pursuit of financial efficiency and strategic development, the Federal Electricity Commission (CFE) finalized a $1 billion public-private investment agreement with the British firm Cubico Sustainable Investments. This partnership will allow for the development of five renewable projects with a capacity of 578 megawatts and battery storage systems in the states of Tamaulipas, Nuevo León, Campeche, and Yucatán, consolidating the co-investment model to strengthen the national electrical system.

El Economista: Gobierno refinanció deuda interna de México por tercera ocasión en el año
 
Excelsior: Acuerdan CFE y Cubico inversión histórica de mil millones de dólares para generar energía renovable