January 24th, 2025

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1. Donald Trump maintains hostility with his policies toward Mexico 

On the morning of Monday, January 20, 2025, the president took office inside the Capitol, followed by the inauguration ceremony that marked his return to the White House. As expected, world leaders attended, as well as technology and digital platform tycoons, including Elon Musk and Mark Zuckerberg.

In his inaugural speech as president of the United States, Donald Trump unveiled a series of measures marking the beginning of his term, highlighting significant changes in foreign policy, migration, and the economy. Many of these will impact Mexico.

El Sol de México: Ya es oficial: Donald Trump asume su segundo mandato como presidente de los EE.UU

Newsweek: Donald Trump sostiene hostilidades con su política hacia México

2. Tariffs could cost Mexico one point of GDP

U.S. President Donald Trump announced that he plans to impose tariffs of 25% on Mexico and Canada, “because they are allowing mass numbers of people and fentanyl” to enter the United States. Speaking while signing executive orders, he said the measures may be put in place on February 1st.

Faced with these actions, Moody’s Analytics estimated that the Mexican economy will lose about one point of Gross Domestic Product (GDP) of growth in 2025, impacted by the tariff and export policy of the United States, as well as by the internal fiscal adjustment being applied by the government.

Finally, U.S. President Donald Trump launched a public consultation in that country to collect recommendations and suggestions for the revision of the USMCA in 2026.

El Financiero: Moody’s advierte que nuevos aranceles de EE.UU. le costarían a México un punto del PIB

3. Border closure with Mexico: Trump orders repatriation and removal of illegal migrants in the US

U.S. President Donald Trump signed an executive order to suspend the entry of migrants into the country through the country’s southern border, which he called an “invasion.” The executive order allows for the repatriation and removal of migrants who enter the United States through the border with Mexico. Just this week, the House of Representatives passed the bill to detain migrants.

Donald Trump declared an emergency on the border with Mexico; thousands of soldiers are deployed in that area after the U.S. president ordered the military presence to be intensified. Around 2,200 elements are already part of Joint Task Force North.

El Financiero: Cierre de la frontera con México: Trump ordena repatriar y remover a migrantes ilegales en EU

4. Trump signs order to declare cartels as terrorist groups

President Donald Trump signed an executive order to classify Mexican cartels, the criminal group Tren de Aragua and the Salvadoran gang MS-13 as terrorist organizations. These groups will become part of a list of organizations – which includes the Islamic State and Al-Qaeda – to which U.S. companies and citizens are prohibited from giving “material support.”

This measure would have global repercussions, expand the reach of U.S. prosecutors and could affect diplomacy with Mexico.

Forbes: Trump firma orden para declarar a cárteles como grupos terroristas

5. Presidential decree for fiscal stimulus package for new investments published in the DOF

The Mexican government announced that it will grant a fiscal stimulus package of up to 30 billion pesos to companies that make new investments or incur training and innovation expenses. These incentives were published in a decree signed by President Claudia Sheinbaum in the Official Gazette of the Federation (DOF).

The Mexican government will also strengthen tax incentives for relocation, which include granting the benefit of accelerated depreciation of new investment in fixed assets for global companies.

El Economista: Fortalecerán incentivos para relocalización de inversiones