Factory Focus Weekly Insights for Manufacturing in Mexico
It's the blog for manufacturing executives operating in Mexico. Designed as a concise, high-value fact sheet, it delivers critical weekly updates on legislative and regulatory changes that could impact your business.
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Plan Mexico latest Developments are Presented
Mexican President Claudia Sheinbaum presented the latest progress on Plan México following U.S. President Donald Trump’s announcement of new tariffs on Mexican exports. Aimed at strengthening economic resilience, the plan includes 18 key objectives to boost Mexico’s internal market, reduce dependence on imports, and enhance social welfare. Among the priorities is food sovereignty, with plans to increase white corn, bean, rice, and milk production while supporting small producers. Energy sovereignty measures include expanding clean fuel production, reducing gas imports, and increasing the national power grid’s capacity. Infrastructure projects will improve highways, expand train routes, and modernize airports, creating up to one million jobs.
Housing initiatives will expand affordable housing and home improvement programs. Manufacturing goals focus on revitalizing industries such as steel, semiconductors, and pharmaceuticals, while vehicle production policies encourage energy-efficient innovation. Public procurement laws will prioritize domestic suppliers, and new regulations will simplify investment processes, supporting a $200 billion investment portfolio. The plan also includes job creation programs, tax incentives for development zones, and increased investment in science and technology, particularly in AI, satellites, and EVs. Social policies will expand scholarships, pensions, and worker benefits, with a minimum wage increase ensuring better living standards. Sheinbaum’s Plan México combines economic strategy with social welfare to enhance Mexico’s self-sufficiency, competitiveness, and resilience amid global trade tensions.
Source: EL FINANCIERO
Reciprocal Tariffs Announced on "Liberation Day"
On April 2, 2025, President Donald Trump declared "Liberation Day" and unveiled his "America First" trade policies, imposing sweeping reciprocal tariffs. Under an executive order invoking the International Emergency Economic Powers Act (IEEPA), the U.S. will impose a 10% universal baseline tariff on imports, with higher tariffs on key trade partners based on trade deficits and non-monetary barriers. China faces a 34% tariff, the EU 20%, Japan 24%, and South Korea 25%, among others. Canada and Mexico are exempt from the new reciprocal tariffs but remain affected by previously announced auto, steel, and aluminum tariffs under USMCA rules. Mexico’s President Sheinbaum reaffirmed the Plan México strategy to support the national economy and strengthen key industries.
Immediate global retaliation has begun, with China imposing tariffs on U.S. agricultural and energy products, the EU announcing countermeasures on €18 billion of U.S. goods, and Canada implementing new tariffs totaling over $185 billion. Mexico has not announced direct retaliation but is reviewing industrial policies. The U.S. established an "External Revenue Service" to enforce tariffs, which will remain until Trump deems trade imbalances resolved. Markets face uncertainty, inflation risks, and global trade tensions are escalating. Analysts anticipate legal disputes at the WTO and among USMCA/EU partners, while Trump officials signal little room for negotiation
Source: NEW YORK TIMES