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US-Mexico economic relations
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Sonora Cattle Exports to US Resume Following Health Testing
Sonora cattle exports to the United States were scheduled to resume on 20 October 2026 after Mexico’s agriculture ministry confirmed a calf found with mouth sores suffered from bovine papular stomatitis, rather than foot-and-mouth disease. The trade pause was initiated on 16 October 2026 at the Agua Prieta quarantine station as a precaution while samples were analyzed by the joint Mexico-US foot-and-mouth commission. This crossing at Douglas, Arizona, typically facilitates the transport of approximately 1,300 head of cattle per day to US feedlots. The diagnostic testing was completed in under 24 hours, confirming that the identified disease poses no major risk to animal health.
Mexico Limits Car Parts Tariff Waiver to 11 Carmakers
On 16 October, Mexico's Economy Ministry clarified that a new zero-tariff waiver for imported car assembly parts, which took effect on 14 October, is restricted to only 11 light-vehicle makers with existing manufacturing plants in the country. The decree, co-signed by Economy Secretary Marcelo Ebrard, President Claudia Sheinbaum, and Finance Secretary Édgar Amador Zamora, aims to protect domestic jobs and incentivize the movement of production lines into Mexico. Under these new rules, qualifying firms must secure prior permission for imports, maintain bonded-warehouse authorizations, and provide vehicle-by-vehicle tracking for parts used in assembly. The ministry specified that importers of finished cars or companies lacking domestic facilities are ineligible for the waiver, which is scheduled to last for five years.
Sonora cattle exports to the US halted due to suspected animal disease
On 16 October, cattle exports from Sonora, Mexico, to the United States were suspended after inspectors at the Agua Prieta quarantine station discovered a calf with mouth sores. The regional cattlemen’s union, UGRS, initiated the halt as a precautionary measure to rule out foot-and-mouth disease, a notifiable condition. Mexico's agriculture ministry stated that preliminary veterinary assessments suggest the presence of vesicular or bovine papular stomatitis, both of which are considered endemic to the region. Before the suspension, the Agua Prieta crossing facilitated the movement of approximately 1,300 head of cattle per day into Douglas, Arizona.
US Lifts Restrictions on Mexican Airlines
On October 16, 2026, the US Department of Transportation revoked an October 2025 order that had blocked 13 existing or proposed routes for Mexican airlines Aeroméxico, Volaris, and Viva Aerobus. The original restrictions were imposed by the US following disputes over landing slot reassignments at Mexico City’s Benito Juárez International Airport (AICM) and the forced transfer of cargo flights to Felipe Ángeles International Airport (AIFA). The reversal followed a May 5, 2026, agreement between the two governments in which Mexico implemented measures to provide transparent access to airport infrastructure and allow US carriers to bid for cargo slots at AICM.
Mexico Expects US Tariff Cuts, Seeks 15% Cap
On October 16, 2026, Mexican Economy Secretary Marcelo Ebrard informed lawmakers that Mexico expects reductions in US tariffs on vehicles and steel within the coming weeks or months. Currently, the United States imposes a 25% tariff on Mexican cars and a 50% tariff on steel and aluminum under Section 232 national-security rules. Mexico is seeking a cap of 15% on car tariffs to match the rate applied to South Korea. These negotiations occur amid reports of internal resistance from US Commerce Secretary Howard Lutnick regarding deep cuts to these duties.
US lifts restrictions on new Mexican flights from capital’s airports
The United States lifted restrictions on new flight routes originating from Mexico City's airports. This regulatory change involved authorities from both the United States and Mexico.
Volkswagen Mexico workers reject pay deal, strike possible
On October 15, 2026, workers at the Volkswagen plant in Puebla, Mexico, voted 3,135 to 2,452 against a two-year pay deal that included a 13.16% total increase in wages and benefits. The Independent Union of Automotive Industry Workers of Volkswagen de México (SITIAVW), led by Secretary General Hugo Tlalpan Luna, organized the vote, which saw a 90% turnout. Volkswagen de México stated the rejected agreement represented its greatest viable effort and expressed concern regarding the potential strike, which is scheduled to begin if no new agreement is reached by the October 22 deadline. The Puebla facility, which builds the Jetta, Tiguan, and Taos, is significant to the US market as approximately 50.75% of the plant's output in the first half of 2026 was exported to the United States.
Residents protest sterile-fly plant in Metapa de Dominguez
Residents of Metapa de Dominguez, Mexico, protested on October 15 to demand the relocation of a $51 million sterile-fly production facility due to a pervasive, nausea-inducing odor described as rotting meat. The plant, which was inaugurated on June 27 by Mexican President Claudia Sheinbaum and US Agriculture Secretary Brooke Rollins, was designed to produce 100 million sterile flies weekly to combat a screwworm outbreak affecting the cross-border cattle trade. Protesters reported that the odor, caused by the larvae's nutrient-rich feed, reached local schools and disrupted daily life for residents. The US Department of Agriculture contributed $21 million to the facility, which serves as a critical component in efforts to address nearly 48,000 recorded cases of the flesh-eating parasite in Mexico.
Mexico Air Arrivals Fell 6.5% in August
According to Mexico's national statistics institute (INEGI), the number of non-border tourists arriving by air fell 6.5% in August to 1,396,364, marking a continuous year-on-year decline since April. Despite the decrease in air arrivals, total visitor spending increased by 7.0% to US$2.41 billion, with the average air tourist spending 15.2% more than in previous periods. Americans accounted for 67.1% of all non-border tourists, and the Mexican government, led by President Claudia Sheinbaum, has proposed a fee increase for foreign visitors that is currently awaiting Senate approval.
Banamex leadership prepares for turnaround ahead of planned Citi IPO
Banamex leadership initiated preparations for a turnaround strategy. These efforts were undertaken in anticipation of a planned initial public offering by Citi.
Televisa’s AT&T Mexico deal boosts its challenge to America Movil
Televisa’s shares rose by approximately 5 percent on October 14 following the announcement of a $2 billion cash deal to acquire AT&T’s Mexican unit alongside Fintech Holdings. The acquisition, expected to close in the first quarter of 2027, was projected to increase Televisa’s share of Mexico’s fixed and wireless subscribers from 8 percent to 19 percent. This strategic expansion was intended to bolster Televisa’s position in a telecom market currently dominated by America Movil, which is controlled by the family of Carlos Slim.
California Avocado Growers Propose Seasonal Import Limits on Mexican Fruit
California avocado growers proposed the implementation of seasonal tariff-rate quotas (TRQs) on Mexican avocado imports during the March–September window to address domestic production pressures. This proposal emerged as the United States prepared to revisit the USMCA trade agreement, highlighting the ongoing tension between California’s domestic output and the reliance on imports that account for 83% of the 2.9 billion pounds imported in 2025. While California managed 49,300 acres of bearing farmland, the source noted that domestic production could not replace the volume provided by Mexico, which supported 37,000 U.S. jobs and generated $7.1 billion in economic output in fiscal year 2025/26.
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