US Continues to Mitigate Security Risks
In response to rising violence and organized crime, the U.S. government under President Trump is intensifying efforts to curb arms trafficking to Mexico. Authorities such as the ATF and CBP pledged to use all available tools, including the recent designation of Mexican cartels as foreign terrorist organizations, to prosecute those involved in drug, human, and arms trafficking more severely.
These measures were reinforced by statements from officials stressing inter-agency cooperation. Meanwhile, Ovidio Guzmán López, son of El Chapo, is expected to plead guilty to federal drug charges, marking a pivotal moment in the U.S. crackdown on cartel leadership. President Trump also confirmed he offered to send U.S. troops to Mexico to fight cartels, but President Sheinbaum firmly rejected the idea, advocating for sovereign cooperation instead.
US – UK Agreement could Sideline Mexico
On May 8, 2025, President Donald Trump and UK Prime Minister Keir Starmer announced a landmark U.S.-UK trade agreement enhancing bilateral economic cooperation. This deal eliminates numerous non-tariff barriers in the UK that previously limited U.S. access, especially in agriculture and chemicals, unlocking an estimated $5 billion in new export opportunities. It includes significant market openings for American beef, ethanol, and pharmaceutical products, and provides preferential access to UK aerospace components for U.S. manufacturers. Additionally, it establishes streamlined customs procedures and high-standard commitments in labor, environment, and intellectual property. Despite this progress, the U.S. retains a 10% tariff on UK goods, with auto imports beyond 100,000 vehicles annually facing a 25% rate. Discussions continue regarding Section 232 tariffs on steel and aluminum, though both countries aim to form a new trade union in these sectors.
This historic agreement could risk sidelining Mexico if similar access and modernized terms are not pursued within the USMCA framework. The U.S.-UK deal signals a shift toward bilateralism and reciprocal trade standards, potentially weakening multilateral accords where Mexico relies on collective leverage. U.S. exporters now enjoy broader access in the UK, while Mexican goods still face EU and UK restrictions post-Brexit. If Mexico does not renegotiate parts of the USMCA or diversify its trade strategies, it may lose competitiveness, particularly in agricultural and automotive sectors. Furthermore, with the U.S. focusing on securing supply chains and high-standard commitments, Mexico must align its labor and environmental policies to remain a priority partner.
What Mark Carney's Leadership Signals for the USMCA
Excerpt from the full post:
In a recent address, former Bank of England Governor Mark Carney highlighted the critical role North America can play in shaping the future of global trade. He pointed to the USMCA as a powerful framework to support economic integration, strengthen supply chains, and attract sustainable investment across the region. Carney urged policymakers and business leaders to seize this opportunity by enhancing regulatory coordination and infrastructure development—especially as global trade patterns shift in response to geopolitical tensions and environmental imperatives.
Carney’s remarks also touched on the importance of labor mobility, climate-focused innovation, and deeper cooperation between Canada, the U.S., and Mexico. As the 2026 USMCA review approaches, his insights underscore the urgency of modernizing the agreement to meet 21st-century challenges. For North America to remain competitive and resilient, aligning policy priorities and investing in green growth will be essential.