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.
Powered by Prodensa
Executive Order 13224 - Official Designation of Cartels
On February 20, 2025, the U.S. government officially designated several Mexican cartels—including the Sinaloa Cartel, CJNG, and the Gulf Cartel—as terrorist organizations under Executive Order 13224. Originally signed by President Bush in 2001, this order allows the U.S. to freeze the assets of individuals and entities linked to terrorism, including those providing financial or material support. Terrorism is defined as acts of violence or intimidation intended to influence governments or populations. The designation process is overseen by the Secretary of State and the Treasury, in coordination with the Attorney General. Once listed, these entities face financial sanctions, barring U.S. individuals and institutions from engaging in transactions with them. The Office of Foreign Assets Control (OFAC) enforces these restrictions by freezing assets and limiting financial access.
This move aligns with Canada’s recent decision to classify Mexican cartels as terrorist organizations, reinforcing a coordinated North American approach to combating organized crime. The designation aims to disrupt the cartels’ financial networks, deter support, raise public awareness, and pressure these groups to halt operations. It also signals U.S. concerns to international governments and institutions, urging them to take preventive action. By reclassifying cartels as terrorist organizations, the U.S. shifts its strategy, treating them not only as criminal enterprises but as national security threats. This policy change could lead to stricter economic measures, enhanced law enforcement efforts, and increased diplomatic pressure to combat cartel-related violence and drug trafficking.
Trump announces tariffs on automobiles, pharma products and semiconductors
Donald Trump announced that his administration will impose a 25% tariff on imported automobiles starting April 2, 2025, along with similar duties on pharmaceutical products and semiconductors. He justified the measure as an incentive for companies to establish operations in the U.S., exempting them from tariffs if they produce domestically. The decision will affect all countries, including Mexico and Canada, despite the free trade agreement.
In response, Mexico’s Secretary of Economy, Marcelo Ebrard, will meet with U.S. officials in Washington to discuss the tariffs and economic integration. Participants will include Commerce Secretary Howard Lutnick and incoming USTR head Jamieson Greer. Ebrard emphasized the close trade relationship between Mexico and the U.S. and aims to foster a constructive dialogue to mitigate the impact of the measure.