TARIFFS: Mexico's Sheinbaum Downplays Trump's Military Directive Against Cartels

Mexican President Claudia Sheinbaum downplayed reports that President Donald Trump authorised military action against Latin American cartels, stating the order has "nothing to do with US military participating on Mexican territory.” Sheinbaum said, “There is no risk of US invading our territory,” per Reuters.  

• NYT reported earlier Trump “secretly signed a directive to the Pentagon to begin using military force against certain Latin American drug cartels that his administration has deemed terrorist organizations,”
• The report notes, “The order provides an official basis for the possibility of direct military operations at sea and on foreign soil against cartels,” adding “Trump became captivated by the idea of bombing drug labs in Mexico,” in his first term.
• The potential source of tension comes as Mexico edges closer to completing a trade framework with the US. Trump's economic advisor Stephen Miran told CNBC “things are looking very promising” for concluding a deal with Mexico.
• Meanwhile, Canada has been sounding out a trade agreement with Mexico that could bolster ties ahead of a renegotiation of the USMCA next year. Canadian FM Anita Anand said in Mexico that it could use energy as a bulwark against Trump’s tariffs: “It’s no secret that Canada is an energy powerhouse and that we have the ability to supply energy to willing countries.”
• Politico notes that, although PM Mark Carney says the USMCA provides tariff-free trade for 85% of Canada’s exports to the US despite 35% tariffs, there are no guarantees Trump will honour the USMCA as tensions rise.