US sanctions and trade treaty doubts strain Mexican economy

The U.S. Treasury has imposed sanctions on several Mexican companies alleged to be linked to money‑laundering and drug‑cartel activities. Security specialist Ghaleb Krame warned that the measures raise the cost of everyday goods for Mexican families, saying, "Es otro grupo de empresas que han venido siendo sancionadas por lavado de dinero y por vínculos con el narcotráfico." He added that the lack of domestic prosecutions and pervasive impunity allow criminal networks to keep prices high and may deter investment.

At the same time, the Trump administration announced it will not automatically extend the United States‑Mexico‑Canada Agreement (USMCA) beyond its current term, prompting fears of a slowdown in the Borderplex region that includes Ciudad Juárez, El Paso and Santa Teresa. UTEP economist Tom Fullerton cautioned, "La amenaza de la cancelación posible del T‑MEC causará una desaceleración…" He said the uncertainty could cut new investment projects, reduce profit margins, limit job creation and slow wage growth. While the pact remains in force until 2036, annual reviews may intensify the economic pressure on both sides of the border.