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Security and bilateral cooperation

The week’s most significant development came Tuesday when Mexico transferred 37 alleged cartel members to the United States in the third major prisoner handover since President Claudia Sheinbaum took office. Among those sent north were Ricardo González Sauceda, identified as a regional leader of the Northeast Cartel, and Pedro Inzunza Noriega, father of a senior Beltrán Leyva Organization figure. The transfer brings to 92 the total number of high-level criminals extradited during the current administration.

Mexico sends 37 alleged criminals to US in third major prisoner transfer

Security Minister Omar García Harfuch emphasized that all transferees were wanted by U.S. authorities and that Mexico received assurances the death penalty would not be sought against any of them. The move appeared designed to demonstrate cooperation amid mounting pressure from the Trump administration, which has recently threatened military strikes against cartels operating in Mexico.

President Sheinbaum defended the decision during Wednesday’s morning press conference, calling it a “sovereign” choice made in Mexico’s interests rather than a capitulation to U.S. pressure. Critics in opposition parties questioned whether proper legal procedures were followed, with some lawmakers demanding greater transparency about the terms of the transfers.

The bilateral security relationship also made headlines when Mexican authorities announced the arrest of Alejandro Rosales Castillo, an FBI “10 most-wanted fugitive” sought since 2016 for murdering his former girlfriend in North Carolina. Captured in Pachuca, Hidalgo, the arrest demonstrated ongoing cooperation between Mexican and U.S. law enforcement agencies.

Thursday brought an even more dramatic capture when former Olympic snowboarder Ryan Wedding turned himself in to authorities in Mexico City. Wedding, a Canadian who competed in the 2002 Salt Lake City Olympics, allegedly ran a transnational cocaine network that imported 60 tonnes annually while living a “colorful and flashy” lifestyle in Mexico for over a decade. FBI Director Kash Patel flew to Mexico City to personally escort Wedding and Castillo back to California, calling Wedding “a modern day Pablo Escobar.”

FBI Director Kash Patel announces the capture of Ryan Wedding, a former Olympian and accused drug lord, after years on the run.

“Just to tell you how bad of a guy Ryan Wedding is, he went from an Olympic snowboarder to the largest narco trafficker in modern times,” Patel said.… pic.twitter.com/GZgAFQqvd5

— CBS News (@CBSNews) January 23, 2026

Adding to the week’s security-related news, questions arose about a U.S. military plane that landed at Toluca airport Saturday. During Monday’s press briefing, Sheinbaum clarified that the flight had been authorized in October for training purposes, with Mexican security officials boarding the aircraft to travel north for a month-long program. Security Minister García Harfuch elaborated during Friday’s conference that U.S. Northern Command had invited Mexican personnel to a Mississippi base for tactical training in shooting and investigation. While Sheinbaum acknowledged it would have been preferable to use a Mexican military plane, she stressed no U.S. troops had entered Mexican territory.

Aviation alerts raise concerns

The Federal Aviation Administration issued seven NOTAMs (notices to airmen) Friday urging U.S. pilots to “exercise caution” over Mexico’s Pacific coast and the Gulf of California due to possible military activities and satellite navigation interference. Mexico’s response characterized the warnings as precautionary, with the Ministry of Infrastructure, Communications and Transport asserting there were no operational implications for Mexican airspace.

The FAA alerts, valid through March 17, sparked speculation about potential U.S. military operations in the region. However, Sheinbaum maintained Sunday that no U.S. military action was occurring in Mexican territory, pointing to coordination between Mexican authorities and the U.S. Embassy to clarify the situation.

International diplomacy and trade tensions

At the World Economic Forum in Davos, Mexico’s presence addressed both environmental and economic priorities. Environment Minister Alicia Bárcena used the platform to stress urgent climate action, warning that current efforts remain insufficient. She outlined Mexico’s development of three circular economy parks and its commitment to achieving net-zero emissions, while seeking international partnerships to accelerate the country’s green energy transition.

Perhaps more consequential for Mexico’s economic future were remarks by Canadian Prime Minister Mark Carney, whose speech Sheinbaum publicly endorsed during Wednesday’s press conference. Carney’s assertion that the rules-based international order is undergoing a “rupture, not a transition” — with veiled references to U.S. President Donald Trump’s policies — could signal challenges ahead for the USMCA trade agreement’s upcoming review.

The escalating tensions between Trump and Carney prompted immediate action from Mexico. After Trump called Canada ungrateful in his Davos speech, Sheinbaum promised Mexico would hold the deal together as Economy Minister Marcelo Ebrard went to Washington to smooth ruffled feathers. “We are going to work so that it doesn’t break,” Sheinbaum said of the USMCA deal.

Adding to economic developments, the Mexican peso strengthened to below 17.5 per U.S. dollar this week — its strongest level since 2024. Banamex economists predicted the “superpeso” could sustain strength for the next two years, offering a rare bright spot amid economic uncertainties.

Tourism and cultural promotion

Mexico took center stage at Madrid’s International Tourism Fair (FITUR) this week as the event’s partner country. The country’s comprehensive showcase featured all 32 states, with cultural performances including Oaxaca’s Guelaguetza and Michoacán’s Danza de los Viejitos drawing international attention. Mexican artist César Menchaca created a striking Huichol-inspired interpretation of Madrid’s iconic Bear and Strawberry Tree monument, placed prominently at Puerta del Sol.

FITUR was also the site of a significant diplomatic moment when Spanish King Felipe VI and Queen Letizia visited Mexico’s fair pavilion — the first contact between the Spanish monarchs and Mexican officials since former President López Obrador’s 2019 demand for an apology for the Conquest. Sheinbaum characterized the visit as “symbolic,” noting the royals’ interaction with Indigenous representatives could help “heal wounds.”

FITUR also yielded concrete results for Mexican states, with Guanajuato Governor Libia García announcing that Air Europa will establish direct flights from Madrid to the Bajío International Airport starting this year. The new route is expected to strengthen international connectivity and boost European tourism to central Mexico.

The promotional effort aligns with the Sheinbaum administration’s ambitious goal of positioning Mexico among the world’s five most-visited destinations by 2040. However, this aspiration faces headwinds from stagnating domestic tourism, which saw essentially flat growth in 2025 after declining in 2024. Experts attribute the trend to a weakening economy, reduced household purchasing power and security concerns affecting certain destinations.

Domestic health initiatives

On the home front, President Sheinbaum announced plans during Tuesday’s press conference to issue universal health care identification cards to all Mexicans, representing a step toward integrating the country’s fragmented public health system. The cards will link to electronic medical records and allow citizens to identify their health care provider while facilitating future cross-institutional treatment.

The registration process, costing approximately 3.5 billion pesos, will begin March 2 with 14,000 Welfare Ministry workers staffing registration modules nationwide. The initiative comes as measles continues spreading throughout all 32 states, with over 7,100 cases and 24 deaths reported in the past year despite vaccination efforts.

Judicial reform questions persist

Questions about Mexico’s controversial judicial reform resurfaced during Friday’s press conference in Veracruz when a reporter asked Sheinbaum whether the Supreme Court showed bias toward the ruling Morena party. The question followed an El Universal report finding that the newly elected Supreme Court — whose nine justices won their seats in Mexico’s first judicial elections last June — had ruled in favor of government-backed reforms at least six times without a single ruling against them. Sheinbaum deflected, saying the court itself would have to answer such questions, while noting that sessions were now public rather than conducted “in the dark” as before.

Weather and natural conditions

As the week ended, Mexico’s National Meteorological Service issued winter weather alerts for northern states, warning of the third major winter storm of the season. Border states including Baja California, Sonora and Chihuahua faced predictions of significant temperature drops, strong winds and heavy rainfall, with possible snow or sleet. The warnings coincided with a potentially historic winter storm system affecting the United States from the Texas Panhandle to the Northeast.

Looking ahead

As the USMCA review approaches, Mexico faces critical decisions about how to navigate an increasingly complex North American relationship. The week’s events — from prisoner transfers demonstrating cooperation to aviation alerts suggesting ongoing tensions, from FITUR’s diplomatic breakthroughs to Davos clashes threatening trade stability — illustrate the delicate balance required. The Sheinbaum administration must maintain sovereignty while strengthening partnerships essential to economic growth, all while addressing domestic challenges from public health to tourism sector weakness and adapting to shifting geopolitical realities where Canada pursues alternatives to U.S. dependence. The coming weeks will test whether Mexico can successfully walk this tightrope.

This story contains summaries of original Mexico News Daily articles. The summaries were generated by Claude, then revised and fact-checked by a Mexico News Daily staff editor.

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The announcement, made during the president’s morning news conference at the National Palace, represents one of the most significant infrastructure investments of her administration and directly responds to widespread complaints about road conditions across the country.

 

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“We conducted a thorough review of the highways and gathered requests from citizens during our travels throughout the country,” Sheinbaum said.

The National Highway Conservation and Mega Bachetón Program 2026 will cover 18,000 kilometers of toll-free federal highways, or just under half (42%) of the country’s toll-free roadways. The initiative expects to create approximately 100,000 jobs throughout 2026.

Regional breakdown

The program divides the country into five operational regions, each targeting key transportation corridors:

Northwest (Baja California, Baja California Sur, Chihuahua, Durango, Sonora and Sinaloa): 8.659 billion pesos to repair 3,170 kilometers covering the Pacific Corridor, Mexico-Nogales and Mazatlán-Matamoros and Gulf-North routes.

Northeast (Coahuila, Nuevo León, San Luis Potosí and Zacatecas): Covering the Mexico-Nuevo Laredo, Querétaro-Ciudad Juárez, Veracruz-Monterrey and Gulf-Huasteca routes.

Central-West (Aguascalientes, Colima, Guanajuato, Jalisco, Michoacán, Nayarit and Querétaro): Including the Manzanillo-Tampico and Guadalajara-Zacatecas routes.

Central Region (México state, Guerrero, Hidalgo, Morelos, Puebla and Tlaxcala): Targeting the Acapulco-Tuxpan, Center-Gulf, Acapulco-Veracruz, Mexico-Veracruz and High Plateau Corridor highways.

South-Southeast (Campeche, Chiapas, Oaxaca, Quintana Roo, Tabasco, Veracruz and Yucatán): Addressing the Puebla-Progreso, Puebla-Tapachula, Trans-Isthmus Circuit and Yucatán Peninsula routes.

Technology and efficiency

To optimize resources and reduce costs, the government has invested in state-of-the-art repaving equipment. The program will deploy 31 paving trains and 62 specialized pothole repair units.

Ten paving trains began operations in 2025, with another 10 set to start work between January and February 2026. An additional 11 machines will be purchased to ensure each region has dedicated equipment.

The modern machinery can advance up to one kilometer per day, significantly improving efficiency. The government is purchasing materials directly and using its own equipment to strengthen the program’s technical capacity and control costs.

A key innovation is a digital monitoring system designed to detect and repair potholes within 72 hours across the 43,000-kilometer toll-free network.

Timeline

The program officially runs from January through December 2026, with work already underway in some regions. The initiative includes both routine maintenance — filling potholes, leveling surfaces, clearing vegetation and cleaning drainage systems — and more extensive periodic conservation involving milling and applying five-centimeter asphalt layers.

The massive undertaking represents a significant test for the Sheinbaum administration’s ability to deliver on infrastructure promises. With Mexico preparing to co-host the 2026 FIFA World Cup alongside the United States and Canada, improved highway conditions will be critical for both domestic travel and international visitors navigating between host cities.

Mexico News Daily

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From Monday’s proactive diplomatic outreach following Trump’s threats of military strikes to Wednesday’s defense of the USMCA trade pact, the week showcased the delicate balancing act between managing U.S. demands and defending national sovereignty — a skill Sheinbaum has demonstrated on numerous occasions.

Breakthroughs in the murder of Uruapan mayor Carlos Manzo and the takedown of a Tren de Aragua outpost offered tangible evidence of her security cabinet’s competence, which is becoming more critical by the day for the continued stability of the United States relationship.

Didn’t have time to read this week’s top stories? Here’s what you missed.

National security strains and accomplishments

Mexico opened the week on the defensive after President Trump declared on Jan. 8 that the United States was “going to start now hitting land” regarding cartels, asserting that “the cartels are running Mexico.”

Sheinbaum rules out US military action in Mexico after Trump call

In response, President Sheinbaum proactively reached out to Trump on Monday morning for what she characterized as a “very friendly” 15-minute call. Sheinbaum firmly ruled out U.S. military intervention in Mexico, telling reporters that Trump “understood” Mexico’s constitutional opposition to foreign military operations on its soil. She said she informed Trump about her government’s concrete security achievements, including the arrest of over 40,000 suspects and the dismantlement of almost 2,000 drug labs over the past 15 months.

The week then brought further evidence of Mexico’s security efforts. The Navy announced the destruction of three clandestine methamphetamine laboratories in Michoacán, Durango and Sinaloa, seizing over 700 kilograms of finished drugs along with 12,000 liters and two tonnes of chemical precursors. Additionally, authorities arrested six members of Tren de Aragua in Mexico City and four alleged Jalisco New Generation Cartel members in Jalisco and Nayarit.

These arrests drew public praise from U.S. Ambassador to Mexico Ron Johnson, who posted twice on social media Tuesday acknowledging Mexico’s efforts. Johnson’s recognition provided a diplomatic boost for Sheinbaum’s government amid mounting pressure, though tensions remained. By week’s end, The New York Times reported that the U.S. continues to pressure Mexico to allow American troops to fight cartels, even as some U.S. lawmakers seek to block such actions.

On Friday, Sheinbaum defended her government’s security record, pushing back against characterizations of narcoterrorism while acknowledging ongoing challenges.

Economic pressures build for Mexican households

Mexican households are feeling the squeeze as data revealed that the cost of the basic food basket rose 4.4% in urban areas in December 2025, outpacing the nation’s overall inflation rate of 3.69%. The basket, which includes 24 essential items from oil and rice to tortillas and soap, now costs approximately 2,467 pesos per month in urban regions versus 1,855 pesos in rural areas. The increase adds pressure to household budgets already strained by broader economic uncertainty.

In a surprising turn, capital flight that had plagued Mexico since April 2025 showed signs of slowing at year’s end. Foreign investors purchased $1.322 billion worth of Mexican bonds in December, though this barely dented the $7 billion that exited throughout 2025. Analysts attributed the outflows not to a financing crisis but to global risk aversion and portfolio rebalancing, noting Mexico still maintains relatively solid macroeconomic fundamentals.

The World Bank projected Mexico’s economic growth would slow to under 1% for 2026, citing uncertainty surrounding tariffs and the upcoming USMCA review rather than immediate policy changes. The projection underscored how Mexico’s economic trajectory remains tightly bound to North American trade dynamics and U.S. policy decisions.

Uncertainty deepens over USMCA

By Wednesday, Sheinbaum again had to respond to inflammatory comments by Trump, but this time about USMCA. During a Michigan factory tour, President Trump declared he doesn’t “even think about USMCA,” calling the trilateral free trade pact “irrelevant” and claiming it provides “no real advantage” to the United States. Trump’s dismissive comments stood in stark contrast to his 2019 assertion that USMCA would be “the best and most important trade deal ever made by the USA.”

President Sheinbaum responded by emphasizing the deep integration of North American economies and noting that U.S. businesses are among the strongest defenders of the trade agreement. She expressed conviction that Mexico’s trade relationship with the United States would continue despite Trump’s rhetoric.

At Thursday’s morning press conference, Economy Minister Marcelo Ebrard reinforced Mexico’s position, stating that the country is ready to negotiate and expressing confidence that the U.S. will ultimately value the relationship. Major automakers, including Tesla, Toyota and Ford, have urged the Trump administration to extend USMCA, highlighting its crucial role in enabling regional competitiveness.

The uncertainty around USMCA negotiations had real consequences for Mexico’s heavy-duty vehicle industry. Production fell nearly 29% and exports are down 28.6% compared to 2024, marking the sector’s worst year since the pandemic.

The peso continues to defy all odds

Against expectations of continued volatility, the Mexican peso hit its strongest level against the dollar in over a year, closing Thursday at 17.65 to the greenback.

The currency marked its fifth consecutive day of gains, appreciating nearly 2% over that period and continuing its defiance of analyst predictions. Experts attributed the strength to dollar weakness globally, favorable interest rate differentials for carry trade operations, and rising silver prices. Notably, the peso strengthened even as Trump questioned USMCA’s future, with analysts suggesting markets recognize that dismantling the trade pact would carry significant costs for U.S. competitiveness.

Mexico’s creative and athletic spirit flourishes

Mexico celebrated multiple achievements in culture, sports and academics this week. Mexico City’s National Museum of Anthropology broke its all-time attendance record, welcoming over 5 million visitors in 2025 compared to 3.78 million the previous year. The surge solidified the museum’s status as one of Latin America’s most-visited cultural venues, though it comes alongside a 119% increase in admission fees for 2026.

On the athletic front, President Sheinbaum led a flag-bearing ceremony for four Mexican athletes heading to the Milan-Cortina 2026 Winter Olympics. Figure skater Donovan Carrillo returns for his second Winter Games, while cross-country skiers Allan Corona and Regina Martínez prepare to compete, with Martínez making history as the first woman to represent Mexico in her event. Alpine skier Sarah Schleper will make her seventh Olympic appearance.

The week also brought recognition for Mexican talent in emerging fields and the performing arts. Veracruz student Valeria Palacios, 19, won the World Education Medal for using artificial intelligence and robotics to address social and environmental problems in her community. Meanwhile, Macario Martínez, the former Mexico City street sweeper who became a viral sensation with his song “Sueña lindo, corazón,” announced his first major solo concert at the León State Fair on January 28, sharing the bill with Latin Grammy winner Paloma Morphy.

Looking ahead

Tourism data continued to reflect positive trends for Mexico’s hospitality sector, with the National Museum of Anthropology’s record attendance mirroring broader increases in international visitors. In November 2025, the number of international tourists increased by 15.6% compared to the same month in 2024, totaling 8.7 million foreign tourists for that month alone. Aeroméxico, the nation’s leading air carrier, actually called for a third terminal at Mexico City International (AICM) due to increasing congestion.

The momentum suggests Mexico’s tourism industry remains resilient despite global economic uncertainties and ongoing security concerns in certain regions. Looking ahead, Mexico enters the latter half of January with key diplomatic and economic challenges on the horizon, including bilateral security negotiations with the United States and continued uncertainty about USMCA’s future.

Looking for Mexico’s previous week in review? Read about it here.

Mexico News Daily

This story contains summaries of original Mexico News Daily articles. The summaries were generated by Claude, then revised and fact-checked by a Mexico News Daily staff editor.

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Following the circulation of images showing fissures in the unions between concrete blocks that make up the bridge, SICT announced it will strengthen the structure and conduct dynamic and static resistance tests before the bridge enters operation, according to El Economista.

Guido Mendiburu Solís, SICT delegate in Quintana Roo, said the bridge structure poses no risk to users. Nonetheless, he said four additional support pillars and a metal beam will be constructed at at least three support points throughout the concrete structure as reinforcement measures.

Some parts of the structure have settled, Mendiburu said, because the bridge was built in an area with high karsticity, a geological feature of limestone areas prone to sinkholes.

“It is not structural damage, but before it is inaugurated we will conduct load tests, both with moving and static vehicles, to verify that the work fulfills the objective for which it was designed,” the official explained.

The images shared by social media users this month show pronounced cracks and irregularities in concrete joints, particularly in sections of the traffic distributor connecting Bonampak Avenue and Luis Donaldo Colosio Boulevard, according to local news outlet Expediente Quintana Roo. The photos also reveal fissures on lower and lateral surfaces of the structure, as well as areas with cracked concrete and chipped edges, generating concern among drivers and local residents about the structural safety of the megaproject.

El Puente Nichupté, en Cancún, Quintana Roo, será uno de los puentes más largos de América Latina sobre una laguna. Su construcción beneficiará a más de 1.3 millones de habitantes y a 20 millones de turistas que visitan la zona anualmente. 🏖️ pic.twitter.com/nHGqFwbkSl

— SICT México (@SICTmx) January 8, 2026

The 11.2-kilometer Nichupté Bridge, which officials had previously announced would open this month, has been plagued by delays since construction began in 2022. Originally proposed in 2006 as part of Cancún’s 2030 Strategic Plan for Sustainable Development, the project languished for 16 years before work finally commenced.

With the bridge scheduled to be inaugurated by the end of this month, builders are coming down to the wire, with Mendiburu reporting that construction is 93% complete.

The bridge will feature three lanes in each direction on its main section with one reversible lane, a bike path and pedestrian walkway. It is designed to reduce transit times between the city center and hotel zone by up to 45 minutes by crossing a portion of the Nichupté lagoon and avoiding the most congested traffic areas. Officials say it will benefit an average of 1.3 million residents and more than 20 million tourists annually, and have promised that there will be no tolls.

With reports from El Economista and Expediente Quintana Roo

This story was written by a Mexico News Daily staff editor with the assistance of Claude, then revised and fact-checked before publication.

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The month-long display, running through Feb. 9, celebrates the nopal as both a national symbol and a statement of sovereignty. Each piece was designed by individual artists or collectives from across the city, transforming the Plaza de la Constitución into what Culture Minister Ana Francis López Bayghen described as “a garden of resistance, memory and contemplation.”

La exposición “Nopalera en el corazón” es una expresión artística y también política, porque este símbolo identitario de nuestro país y de nuestra ciudad habla de nuestra historia, de nuestra resistencia y de la manera en que nos miramos como pueblo.

Son 200 esculturas… pic.twitter.com/R3haxE6i7H

— Clara Brugada Molina (@ClaraBrugadaM) January 9, 2026

“This exhibition is an artistic and political expression of national sovereignty,” Brugada said during the opening ceremony. “Here is the nopal as an element of our identity, as a symbolic element of our country and our city.”

The project expands on an initial showcase of 50 pieces displayed at the Nopal Fair 2025 at the Monument to the Revolution. Of the 200 new works, 113 were created by male artists, 63 by women and 23 by artistic collectives.

Sculpture artists employed diverse techniques including printmaking, vinyl paint, aerosol and sculptural elements. Their themes range from social justice proclamations to pre-Columbian references and abstract designs.

Brugada announced plans for accompanying cultural programming throughout the exhibition, including music, theater and talks. She also revealed intentions to display the sculptures at emblematic locations during the 2026 FIFA World Cup and called on artists to create a similar exhibition featuring axolotls before Easter.

Mexico News Daily

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Mexico also received mixed economic news, with 2025 year-end economic painting a bleak picture. But things are looking up for 2026, with improved growth forecasts and postive news on the tourism front.

Venezuela crisis dominates diplomatic agenda

The week’s most pressing international development centered on U.S. military intervention in Venezuela, which drew swift condemnation from President Sheinbaum. The Mexican leader took a firm stance against what she characterized as an unacceptable violation of Venezuelan sovereignty, even as President Donald Trump ominously suggested that “something’s going to have to be done with Mexico.”

Sheinbaum doubled down on her position, asserting that intervention does not bring democracy to the people. Her principled opposition to foreign military action reflected Mexico’s longstanding doctrine of non-intervention, which she elaborated on during Wednesday’s mañanera. By Friday’s press conference, she revealed coordination with Brazilian President Lula da Silva on the Venezuela situation, showing regional leaders working together to present a unified Latin American response. The president also called for a fair trial for Venezuelan President Nicolás Maduro, advocating for due process even as international pressure mounted.

The Venezuela situation resonated deeply within Mexico, where protests erupted across both country in response to the U.S. military operation.

Meanwhile, reports confirmed that Mexico has replaced Venezuela as Cuba’s top oil supplier, underscoring the country’s growing energy role in the Caribbean and its continued support for the island nation despite international pressures.

Joy meets fear as the Venezuelan community processes Maduro’s capture from Mexico

Trump threatens military action on Mexican soil

Diplomatic tension ramped up even further after President Trump suggested potential land strikes on Mexican cartels, raising the specter of unilateral U.S. military action within Mexican territory. The threat represents an extraordinary escalation in rhetoric that challenges Mexican sovereignty and complicates the already difficult relationship between the two neighbors. This development, combined with Trump’s earlier comments about “doing something” about Mexico in the context of Venezuela, suggests the incoming administration may adopt an aggressive posture toward Latin America that could fundamentally reshape regional dynamics.

President Sheinbaum, however, downplayed the threats as hyperbolic. She said that Mexico seeks to maintain security cooperation with the U.S. and that “we don’t want to think about any other scenario.”

Economic indicators send mixed signals

The economic picture proved decidedly mixed. While consumer confidence fell to its lowest point since 2023, a survey of banks showed improved GDP growth projections for Mexico, indicating that financial institutions maintain confidence in the country’s medium-term economic prospects.

Labor market data presented concerns, however, as Mexico’s formal job market showed troubling signs, raising questions about employment quality and economic opportunity for Mexican workers. The formal sector’s struggles could undermine broader economic growth if not addressed.

The tourism sector continued to shine as a bright spot. Tamaulipas tourism reached its highest point, demonstrating the border state’s successful efforts to overcome security concerns. Even more prestigious recognition came as The New York Times listed Querétaro as a top place to visit in 2026 and Oaxaca’s Costa Chica earned a spot on National Geographic’s 2026 travel recommendations, highlighting Mexico’s growing appeal to international travelers seeking authentic cultural experiences.

Domestic political landscape shifts

Despite mounting international pressures, Sheinbaum’s political standing appeared robust. A poll showed the president maintaining a 69% approval rating, suggesting her handling of both foreign and domestic issues continues to resonate with voters.

Sheinbaum ends first full year with 69% approval; social programs shine, security plan struggles

The political landscape itself saw notable developments, with the emergence of a new ultraconservative political party signaling potential challenges to Mexico’s political status quo. This development suggests Mexico’s political spectrum may be diversifying as citizens seek alternatives across the ideological range.

Urban policy and governance initiatives

In a dramatic move affecting the capital, Mexico City removed all street vendors in what appears to be a comprehensive effort to reorganize public spaces. The decision, which affects thousands of informal workers who depend on street vending for their livelihoods, has sparked debate about the balance between urban order and economic survival for the city’s most vulnerable residents.

On the security front, positive news emerged as Mexico’s homicide rate showed decline in 2024, offering hope that violence reduction efforts may be gaining traction after years of elevated crime rates. The decrease, while modest, represents a potential turning point in the nation’s struggle with organized crime and violence.

On Friday, registration kicked off for a new government initiative: cell phone users in Mexico will need to register with their CURP, the country’s unique population registry code. The move aims to combat crime and fraud but has raised questions about privacy and implementation challenges.

Looking ahead

As Mexico moves deeper into 2026, President Sheinbaum faces extraordinary challenges across multiple fronts. Trump’s threats of military strikes on Mexican territory to combat cartels represent an unprecedented challenge to sovereignty that will test Mexico’s diplomatic resolve and could define the bilateral relationship for years to come. While Sheinbaum has worked to build Latin American solidarity through coordination with Brazil’s Lula and other regional leaders on the Venezuela issue, whether regional unity can withstand U.S. pressure remains uncertain.

Domestically, the picture is nuanced: Economic conditions remain challenging yet improving GDP projections, falling homicide rates and international tourism recognition suggest underlying strengths. With nearly 70% of Mexicans backing her leadership, Sheinbaum enters the new year with substantial political capital, but the convergence of domestic pressures and escalating U.S. threats may soon test the limits of that support.

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The tragedy cast a somber shadow over the year’s end, even as Sheinbaum delivered her New Year’s message emphasizing unity and progress.

Didn’t have time to read this week’s top stories? Here’s what you missed.

Fatal interoceanic train derailment

The week’s most tragic story unfolded Sunday morning when the Interoceanic Train derailed near Nizanda, Oaxaca, approximately 85 kilometers north of its destination in the port city of Salina Cruz. The accident killed at least 13 people and injured more than 100 of the 250 passengers and crew aboard the two-locomotive, four-carriage train.

The derailment occurred on a curved section of track at the edge of a ravine. While the two locomotives avoided falling down the embankment, the first passenger car detached and slid approximately 6.5 meters down the slope. The second car was left partially suspended in mid-air, while the third and fourth cars came to rest crosswise over the tracks but remained undamaged.

President Claudia Sheinbaum immediately dispatched Navy Minister Admiral Raymundo Morales to the scene and mobilized medical teams. On Wednesday, the president announced plans to seek international certification to improve railway safety, stating that once investigators submit their report, a certifying body should recommend improvements to ensure the track and locomotives are in proper working order.

The accident has increased pressure on Sheinbaum over the safety of recent government megaprojects. Investigative journalist Alejandra Crail reported that Mexico’s federal auditing agency had cited concerns during the train’s construction phase about steep slopes, curves and undulations in the mountainous terrain, as well as questions about contractors’ technical capacity. This marks the third train accident in Mexico this year, following one derailment on the Maya Train in Yucatán and another in Quintana Roo, though neither resulted in serious injuries.

Market performance defies economic headwinds

Despite ongoing struggles in Mexico’s macroeconomy, the nation’s financial markets closed 2025 with remarkable strength.

Mexican stocks outperformed Wall Street, with the iShares Mexico ETF rising over 50% — its highest increase since 1999, significantly exceeding major U.S. benchmarks. Mining and materials companies particularly benefited, with Industrias Peñoles surging more than 260% and Gentera climbing over 100%.

The peso’s performance proved equally impressive. Mexico’s currency strengthened nearly 14% against the U.S. dollar in 2025, marking its best year since before 1994, when the country established its current free-floating exchange rate regime.

2025 was the modern Mexican peso’s best year ever

The peso closed around 18 per dollar and ranked as the sixth-best-performing major currency globally. The Bank of Mexico’s interest rate cuts — reducing rates by 300 basis points to 7% — helped inject cash into the economy while maintaining investor confidence, alongside structural factors like nearshoring and export resilience.

Mexico’s tourism engine full steam ahead into 2026

Mexico’s tourism industry demonstrated impressive momentum as the year closed, with the country expecting nearly 5 million tourists during the 2025-2026 year-end holidays between Dec. 20 and Jan. 11. This represents a 5% increase over the previous season, with national hotel occupancy rates reaching 56.6% and some destinations exceeding 80%. Tourism Minister Josefina Rodríguez Zamora emphasized that the sector’s strong performance underscores tourism’s role as a vital engine for Mexican families’ well-being.

Felipe Ángeles International Airport moved more than 7 million passengers in 2025, a 12% jump over 2024, bringing the Mexico City area’s second international airport to 17 million passengers served since operations began in March 2022. AIFA’s Master Development Plan projects serving 9 million passengers by 2026, with the FIFA World Cup expected to drive significant additional traffic.

These are all the upgrades coming to Mexico City ahead of the World Cup

The airport faced challenges during the year, including cancellation of 11 international routes by the U.S. Department of Transportation, eliminating approximately 84,000 passengers. President Sheinbaum has committed to recovering these routes in 2026. The long-awaited Lechería-AIFA train connection remains on schedule to open by late March, just in time for Holy Week travel.

Meanwhile, Cancún will welcome 17 new international flight routes for 2026, connecting Mexico’s Caribbean coast to 11 U.S. cities, five Canadian cities and Dublin, Ireland — marking the first non-stop flight between Cancún and Ireland. Additional domestic connectivity came through Viva Aerobus’s new Saltillo-Cancún route launching in March.

New trade barriers take effect

The new year brought sweeping tariff increases on imports from China and other countries without free trade agreements with Mexico. The measures, effective Jan. 1, affect 1,463 product categories across sectors, including automotive, textiles, steel, plastics and electronics. New duties range from 5% to 50%, with the highest rates on vehicles from China and certain Asian nations.

The policy aims to safeguard approximately 350,000 jobs and advance “sovereign, sustainable and inclusive reindustrialization” under Plan México, President Sheinbaum’s strategy targeting a 15% increase in domestic content and 1.5 million new jobs. The government estimates the tariffs will generate 70 billion pesos in annual revenue. Chinese cars, including electric vehicles from manufacturers like BYD, previously faced 20% duties; the new 50% tariff has been welcomed by Mexican auto industry leaders. Critics warn the measures could increase consumer prices and hurt small businesses relying on imported inputs.

Earthquake rocks capital on second day of the year

Mexico City residents barely had time to ring in the new year before a magnitude 6.5 earthquake struck Friday morning at 7:58 a.m., triggering the capital’s seismic alarm and sending people into the streets. The epicenter was located 15 kilometers south of San Marcos, Guerrero, at a depth of 5 kilometers, and was especially strong in Acapulco, where residents reported intense shaking lasting 30 seconds.

As of midday Friday, authorities confirmed one death — a man who fell while rushing down stairs — with 12 people injured. Mexico City Mayor Clara Brugada reported five downed poles and four fallen trees, with power outages affecting multiple boroughs.

 

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A small electrical substation fire was quickly contained with no injuries. The National Seismological Service recorded 273 aftershocks by 10 a.m., with the largest at magnitude 4.2. Both President Sheinbaum and Mayor Brugada confirmed no serious structural damage in the capital, while Benito Juárez International Airport (MEX) reported normal operations.

Looking ahead

As Mexico moves into 2026, the nation faces great opportunities and tests. The USMCA review process begins this month, with formal discussions expected to dominate trade policy headlines through mid-year. The new tariffs on Chinese imports will reshape supply chains and potentially affect consumer prices, while their long-term impact on domestic manufacturing and job creation remains to be seen.

Tourism’s continued momentum — bolstered by new flight routes and strong year-end numbers — positions the sector as a key economic driver, particularly with the FIFA World Cup on the horizon in June.

Whether the peso can maintain its remarkable performance and stocks continue their rally will depend on how successfully Mexico navigates these trade negotiations and implements its economic development strategy. The investigation into the Interoceanic Train derailment will also test the government’s commitment to accountability and infrastructure safety as it pushes forward with ambitious transportation projects.

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The tariff modifications, published in Mexico’s Official Gazette on Dec. 30, affect 1,463 product categories across more than a dozen sectors including automotive, textiles, clothing, steel, plastics, footwear, furniture, toys, aluminum and glass. The new duties range from 5% to 50%, with the highest rates applied to vehicles from China and certain other Asian nations.

According to Mexico’s Economy Ministry, the measure is designed to safeguard approximately 350,000 jobs in sensitive sectors and advance what the government calls “sovereign, sustainable and inclusive reindustrialization.”

The tariffs are also linked to Plan México, President Claudia Sheinbaum’s economic development strategy that aims to increase domestic content in production chains by 15% and generate 1.5 million new jobs.

“This tariff modification constitutes a commercial and economic measure that seeks to benefit the people of Mexico, and is not directed at any particular country,” the Economy Ministry stated in its announcement. The changes impact imports from countries including China, India, South Korea, Thailand, Indonesia, Brazil, South Africa and the United Arab Emirates.

The measure follows Congressional approval of the tariff reform in December, when the Chamber of Deputies voted 281-24 in favor of the bill. The legislation was significantly softened from Sheinbaum’s original September proposal before passage, though the 50% maximum tariff on imported vehicles remained intact.

Chinese cars, including electric vehicles from manufacturers like BYD, have surged in popularity in Mexico in recent years and faced a 20% import duty in 2025. The new 50% tariff represents a substantial increase that Mexican auto industry leaders have welcomed as protection for domestic manufacturers.

The government estimates the tariffs will generate an additional 70 billion pesos ($3.8 billion) in annual revenue.

Critics have warned the tariffs could increase consumer prices and hurt small businesses that rely on imported inputs. The measure also comes as Mexico seeks to strengthen its position ahead of the 2026 review of the USMCA free trade agreement with the United States and Canada, both of which have questioned Mexico’s growing economic ties with China.

Mexico News Daily

This story was written by a Mexico News Daily staff editor with the assistance of Claude, then revised and fact-checked before publication.

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Here are Mexico News Daily’s most-read stories of the year.

1. Mexico’s electric vehicle ‘Olinia’ set to debut at 2026 FIFA World Cup

To kick off the year, President Claudia Sheinbaum’s administration unveiled ambitious plans for Mexico’s first domestically produced electric vehicle in January.

Named “Olinia” — meaning “moving” in Náhuatl — the project aims to create affordable, compact EVs priced between $4,400 and $7,400. With production planned for Sonora state and three models in development, including a delivery vehicle, the initiative represents Mexico’s push toward sustainable transportation and technological independence. The vehicles are designed for urban families and younger drivers, offering a safer alternative to motorcycles while supporting the country’s energy transition goals.

Keep your eyes peeled for more news about Mexico’s home-grown electric car as the World Cup approaches: The tournament will start on June 11 in Mexico City.

2. Puerto Vallarta implements new tourist fee for foreign visitors

Jalisco’s Congress in February approved a controversial fee targeting foreign tourists visiting Puerto Vallarta, sparking debate about its legality and impact. The fee, designed to fund infrastructure improvements including street repairs and public space rehabilitation, could generate between $14-24 million annually. Critics questioned its constitutionality, with some arguing it violates federal restrictions on transit taxes. The measure exempted residents, children under 14, people with disabilities, and tourism workers, but its implementation raised questions about enforcement and potential effects on the region’s vital tourism industry.

The fee was eventually declared unconstitutional by Mexico’s new Supreme Court. The city plans to roll out a modified version of the fee in 2026 that it says complies with court guidance.

3. Why you should try spicy salsa: A cultural deep dive

This feature explored the cultural and historical significance of Mexico’s beloved chile peppers and spicy salsas. From the ancient Mexica goddess of chile, Tlatlauhqui Cihuatl Ichilzintli, to modern-day taquería etiquette, the article examined why “enchilarse” is a quintessentially Mexican experience. The story dives into the science of spicy and the history of chile in Mexico, with a few recommendations thrown in for authentic spots to try hot salsas in Mexico City and Coyoacán.

4. Why you can’t climb Teotihuacán’s pyramids anymore

The 2020 decision by Mexico’s National Institute of Anthropology and History (INAH) to prohibit climbing the ancient pyramids at Teotihuacán sparked nostalgia and debate. The article traced the site’s rich history — from its mysterious construction around 200 BCE to its designation as a UNESCO World Heritage Site — while explaining the preservation and visitor safety concerns that prompted the restriction.

With daily visitor numbers once reaching 15,000, the wear on these reconstructed structures became unsustainable. Violators now face fines ranging from $25 to $4,900, with jail time possible for irreparable damage.

There are only a few exceptions to the rule. One, the Nohoch Mul pyramid, reopened to the public in early December.

5. Eastern monarch butterfly population nearly doubles in Mexico

Conservation efforts showed promising results in March as the area occupied by eastern monarch butterfly colonies in Mexican forests increased from 0.90 to 1.79 hectares during the 2024-2025 winter season.

The World Wildlife Fund and Mexico’s Natural Protected Areas Commission conducted the survey, identifying eight colonies across Michoacán and México state. While the doubling represents significant progress, scientists emphasized that populations remain far below long-term averages, and continued conservation work — including addressing climate change impacts on forest ecosystems — remains critical for the species’ survival.

6. San Miguel de Allende named ‘Best City in the World’ again

For the second consecutive year, Travel + Leisure magazine’s readers voted San Miguel de Allende as the Best City in the World. The Guanajuato destination earned praise for its colonial architecture, cultural richness, walkability, gastronomy and the warmth of its residents. The honor adds to an impressive collection of accolades, including previous recognition from Condé Nast Traveler. Mexico City ranked seventh in the same survey, while Mérida, Yucatán, secured the 25th spot, highlighting Mexico’s strong showing in global travel rankings.

7. Scientists heard more vaquita porpoise calls this year — a sign of hope for the world’s most endangered marine mammal

Acoustic monitoring in the Gulf of California detected 41 encounters with the critically endangered vaquita porpoise, offering hope that conservation efforts may be working. While these acoustic “pings” don’t confirm 41 individual animals — the same porpoise may trigger multiple encounters — the high number suggests the population may be larger than the six to eight specimens recorded in the 2024 census.

The best part of the story? One of the calls was from a baby, meaning the porpoises are still breeding despite their tiny population size.

The monitoring program helps scientists identify natural refuge areas and prepare for future observation missions, though experts emphasize the need for continued vigilance against illegal fishing.

Vaquita in the Gulf of California sent 41 location signals to scientists, ‘a sign of hope’

8. Baja California Sur becomes first state to legalize swimming with orcas

Baja California Sur pioneered new regulations for the increasingly popular activity of swimming with orcas, specifically targeting the community of La Ventana, where most tour operators work. The groundbreaking decree establishes permit requirements, limits the number of boats that can approach orcas, and mandates that captains respect the animals’ behavior and retreat if they show distress. Permit revenues will fund training programs and enforcement patrols.

While some local operators expressed concerns about implementation, scientists involved in developing the regulations called it an important step toward sustainable wildlife tourism.

9. Mexico’s first domestically-made airplane in 70 years takes flight

The Halcón 2.1 received federal certification, marking the first aircraft 100% designed and manufactured in Mexico under international standards since 1957. Developed over 11 years by Celaya-based Horizontec, the two-seater light-sport aircraft celebrated its certification with Economy Minister Marcelo Ebrard aboard for an exhibition flight in September.

Built from carbon fiber with a 141-horsepower engine, the plane can reach 18,000 feet and has a range of 1,100 kilometers. Priced at around $200,000 with significantly lower operating costs than comparable models, Horizontec already has 18 orders and eyes export opportunities.

10. Sargassum galore: Mexico declares the seaweed a national resource

In a bold move to address the persistent seaweed problem plaguing Mexican Caribbean beaches, Mexico’s Agriculture Ministry officially declared sargassum a national fishing resource. The designation allows equipped vessels to harvest up to 945,000 tonnes of the invasive seaweed annually before it reaches shore and decomposes. What was once merely a tourism nuisance is now being transformed into an economic opportunity, with sargassum showing potential for use in animal feed supplements, fertilizers, biofuels, bioplastics, textiles, and even construction materials.

The change comes as tourism in places like Tulum has dropped steeply, in part due to sargassum accumulation. To address the problem, the Navy collected over 266,000 tonnes between 2019 and 2025, and the state of Quintana Roo is pioneering efforts to convert the seaweed into clean energy.

Thank you for being part of the Mexico News Daily community throughout 2025. Here’s to another year of compelling stories from across Mexico in 2026!

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Economic growth and trade tensions

Mexico’s economy showed signs of resilience in October, with the National Institute of Statistics and Geography reporting 1% monthly growth following a third-quarter contraction. The agricultural sector led the rebound with 1.4% growth compared to the previous month, while the tertiary sector expanded by 1.2%. However, analysts cautioned that uncertainty around U.S. trade policies and sluggish public investment continue to cloud Mexico’s economic outlook.

The Mexican economy changes direction, growing 1% in October

Trade relations took center stage as Canada, Mexico and the United States prepared to launch formal USMCA review discussions in mid-January, with a July 1, 2026 deadline to conclude negotiations. Economy Minister Marcelo Ebrard expressed confidence in the agreement’s renewal, emphasizing that Mexico remains the United States’ largest buyer. Meanwhile, Mexican baker Grupo Bimbo filed a lawsuit against Trump administration tariffs, challenging their constitutionality and seeking reimbursement of duties already paid. The case highlights mounting legal pressure on tariff policies that Bimbo argues were imposed under false pretenses of economic emergency.

In the sports business arena, U.S. equity firm General Atlantic purchased a 49% stake in Televisa’s Grupo Ollamani, owner of Club América and the 88,000-seat Banorte Stadium, in a deal valued at approximately $490 million. The partnership includes collaboration with a subsidiary of the Kraft Group, which owns the New England Patriots. Club América becomes the fifth Liga MX team with significant U.S. funding, reflecting growing foreign investment in Mexican soccer ahead of the 2026 FIFA World Cup.

Infrastructure developments

Transportation infrastructure advanced as President Sheinbaum announced the long-delayed train to Felipe Ángeles International Airport should be operational by April 2026. Originally scheduled for completion in 2022, the 30-kilometer line will connect AIFA with Mexico City’s Buenavista station in 43 minutes. Once operational, trains will depart every 15 minutes with capacity for 719 passengers each, connecting with the Suburban Train, Mexico City Metro and multiple bus systems.

Bright prospects for tourism

Mexico’s tourism sector received encouraging news as a Google and Deloitte study projected the country will crack the top five most-visited destinations globally by 2040. Currently ranked sixth, Mexico is expected to grow from 45 million foreign tourists in 2019 to 90 million by 2040, assuming annual growth of 2.5% to 3.5%. The projection reflects Mexico’s robust air connectivity with North America, diverse attractions from beaches to colonial cities, and growing interest in cultural heritage sites.

México sigue consolidándose como un destino atractivo para invertir. 🙌🏼

Durante el tercer trimestre de 2025, la Inversión Extranjera Directa Turística registró un crecimiento del 40.3%, alcanzando 787.6 millones de dólares. 📈

Este avance refleja la confianza internacional en… pic.twitter.com/WYcf6eOv67

— SECTUR México (@SECTUR_mx) December 27, 2025

Regional cooperation and humanitarian aid

In a demonstration of regional solidarity during the Christmas season, Mexico sent 80,000 barrels of petroleum to Cuba to help alleviate the island’s ongoing energy crisis. President Sheinbaum emphasized the shipment’s humanitarian purpose and Mexico’s historical relationship with Cuba, noting the aid is being provided within a legal framework. Cuba has faced severe power outages for three years, with regular blackouts of 20 hours or longer stemming from insufficient fuel supplies and aging infrastructure. The Christmas week timing of Mexico’s support highlighted the government’s commitment to helping neighbors during the holiday period.

Tragedy and resilience in Texas

Christmas week also brought heartbreak when a Mexican Navy plane crashed near Galveston, Texas, immediately killing five people on a humanitarian medical mission. The Beechcraft King Air 350 was transporting a child burn victim and members of the Michou y Mau Foundation when it went down in foggy conditions on Monday. Eight people were aboard, including four Navy officers and four civilians. Two passengers were rescued, while one remains missing.

Government corruption came under scrutiny after two immigration agents working the Brownsville-Matamoros Free Trade Bridge were caught on video allegedly demanding bribes from Mexican nationals returning from the United States for the holidays. The incident prompted Sheinbaum to announce plans for a comprehensive reporting system for corruption across all government institutions.

Presidential leadership during Christmas week

During the Christmas holiday, President Sheinbaum spent December 25-27 in Acapulco, marking her first official break since taking office. The choice of destination carried symbolic weight, as the coastal city continues recovering from Hurricane Otis’s devastation two years ago. Before her departure, Sheinbaum led her Tuesday morning press conference audience in singing “Feliz Navidad” and suspended daily briefings until December 29 to give journalists time with their families for the holiday.

On Christmas Eve, the president released a video message from the National Palace celebrating unity and Mexican values during the holiday. She called on the nation to embrace solidarity and remember that “the most important thing is not the material, but values and love for others.” Her Christmas message honored those spending the holiday away from home, including workers abroad, military personnel, healthcare professionals and transportation workers.

Looking Ahead

Mexico remains relatively quiet as it takes stock and prepares for 2026. The new year will put diplomatic and trade relationships to the test with the USMCA review, starting mid-January. Economic indicators hint at recovery despite persistent headwinds, and tourism’s upward trajectory shows promise. Through it all, the holiday period reminded Mexicans of the enduring values of community, resilience and shared purpose that will shape the nation’s path forward.

Mexico News Daily

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