US-Mexico Relations and Trade Dynamics Ahead

The United States-Mexico-Canada Agreement (USMCA) became effective on July 1, 2020, requiring businesses to adhere to updated rules of origin and regional content criteria to qualify for preferential tariff treatment. Recent discussions at the U.S.-Mexico Defense & Security Roundtable highlighted the strengthening military partnerships between the U.S. and Mexico, with an emphasis on integrated security cooperation through NORAD and USNORTHCOM. Amidst the backdrop of potential tariffs from Donald Trump's second term, experts noted that the U.S. has become increasingly reliant on Mexico, presenting new bargaining dynamics in their relationship. This evolving trade context is compounded by opportunities for Latin America in critical minerals and trade, although risks from Trump's unpredictable policies and focus on immigration persist. The 'LatAm Outlook 2025' report emphasized that personalized relationships with the U.S. administration could yield advantages for Latin American countries. Overall, the interplay between trade, defense, and foreign policy continues to shape the North American landscape.