Mexico’s export-led model faces fresh uncertainty after Donald Trump kept the USMCA on an annual review cycle, undermining the long-standing pitch that companies can build in Mexico and sell into the US.
That 1-year timetable raises the risk that trade terms could be revisited every year, making manufacturers and other investors less willing to commit capital tied to US market access.
The added uncertainty threatens to deepen an investment slump already weighing on Latin America’s second-largest economy, where exports to the US have been a central growth engine.
For Mexico, the shift turns a regional trade pact that once offered predictability into a recurring source of risk for factories, supply chains and future expansion plans.