In partnership with

What’s New This Week

Good morning, this week, we’re tackling the economic and security shifts shaping U.S. border relations—from tariffs that hit American consumers hardest to Mexico’s role as a nearshoring powerhouse and the growing cooperation in the fight against cartels. With new trade tensions brewing and major cartel figures being extradited, the stakes are high for both countries. We break down what it all means for businesses, border communities, and North America’s future.

First time reading? Join thousands of intellectually curious readers. Sign up here.

Let’s dive in.

Stay up-to-date with AI

The Rundown is the most trusted AI newsletter in the world, with 1,000,000+ readers and exclusive interviews with AI leaders like Mark Zuckerberg, Demis Hassibis, Mustafa Suleyman, and more.

Their expert research team spends all day learning what’s new in AI and talking with industry experts, then distills the most important developments into one free email every morning.

Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses – tailored to your needs.

Sign up to start learning.

The Quick Courier

Trade Winds

The Invisible Tax – How Tariffs Really Affect Consumers and Businesses

There’s a common talking point that tariffs are essentially a way for one nation to “punish” another, especially when trade balances or political leverage come into play. President Trump’s latest announcement—imposing new tariffs on imports from Mexico starting March 4—seems to follow that familiar script: The U.S. slaps on fees, Mexico pays the price. Yet for the countless American families, small businesses, and even large corporations that rely on cross-border trade, the reality is far more complicated. The real question to ask is: Who actually foots the bill for these tariffs?

Most economists and trade experts will tell you that tariffs function like an “invisible tax.” While the word “tax” might not appear on your grocery receipt or your company’s invoice, the effect is similar: costs rise, and someone has to pay more. The chain reaction usually starts with increased fees at the border, which leads to higher shipping and distribution costs, eventually hitting manufacturers and importers. Ultimately, these extra costs often get passed on to consumers in the form of higher prices.

Power Move

The Biggest Winner of the China Tariffs? Mexico—If It Can Solve Its Energy Problem

The latest round of U.S. tariffs on China could be the biggest opportunity yet for Mexico to solidify its position as the premier nearshoring destination. As companies seek to de-risk their supply chains and move production closer to North American consumers, Mexico stands to gain billions in new investment. It has the location, trade agreements, and—perhaps most importantly—the workforce that global companies need. But there’s one major obstacle standing in the way of its full potential: energy reliability.

During my recent trip to Guadalajara, I saw firsthand what makes Mexico such an attractive alternative to China. The country isn’t just a low-cost manufacturing hub—it has a skilled, trainable workforce that can meet the evolving needs of U.S. and international companies. From advanced manufacturing to high-tech industries, Mexico is proving that it has the talent and expertise to compete globally. That’s why businesses from Europe, Asia, and beyond are eyeing Mexico as the smart choice for their next investment.

But to fully capitalize on this opportunity, Mexico must address its energy infrastructure. Industrial corridors in the north and center of the country are already facing power shortages, and without significant investment in energy reliability, the momentum of nearshoring could slow. Companies looking to shift operations out of China won’t just consider labor costs—they need a stable energy supply to keep production running efficiently.

Mexico has a golden opportunity to become the biggest winner of the global trade realignment. The U.S.-China tariff war isn’t just about punishing Beijing—it’s about restructuring supply chains for long-term resilience. If Mexico can ensure reliable energy for its growing manufacturing sector, it will not only attract more U.S. businesses but also position itself as the dominant force in North American production.

The workforce is ready. The geopolitical advantage is clear. Now, Mexico just needs to power up!

The Border Buzz

Beyond Extradition – What’s Next for U.S.-Mexico Anti-Crime Efforts?

The recent extradition of high-profile cartel figures to the U.S. is a headline-grabbing moment, but the real question is: Will it make a lasting impact? While bringing key players to justice is important, history has shown that extraditions alone won’t dismantle organized crime. If we want true progress, we need a broader strategy—one that prioritizes cross-border cooperation, intelligence-sharing, and economic investment in vulnerable regions.

I’ve spent years working on U.S.-Mexico security and trade relations, and one thing is clear: quick fixes don’t work. When El Chapo was extradited, many expected cartel influence to decline, but instead, rival factions fought for control, leading to more violence in Mexico. Today’s extraditions present a new opportunity—but only if we learn from past missteps.

A true bilateral strategy must focus on:

1. Tackling Fentanyl at the Source – The U.S. must work with Mexico and China to disrupt the precursor supply chain, not just target cartel leaders.

2. Strengthening Border-State Cooperation – States like Arizona, Texas, and California need better coordination on security policies, not just federal enforcement.

3. Investing in Border Communities – Violence thrives where economic opportunity is limited. Supporting education, workforce training, and trade between our nations is just as critical as enforcement.

Mexico’s willingness to extradite key figures is a sign of cooperation, not conflict—a reminder that security isn’t about threats or tariffs but real partnership. If both nations commit to a long-term plan, these extraditions could mark a turning point. If not, we’ll see history repeat itself.

Power Poll

Join the Conversation

Thanks for reading this edition of my newsletter! I'd love to hear from you. Share your thoughts about what you think are the most critical issues that need to be addressed. Email me at [email protected] or connect with me on social media using the hashtag #Intermestic.

Stay Informed, Stay Connected!

• Subscribe to my blog at www.marcolopez.com.

• Follow me on X, LinkedIn, and Facebook for the latest news and updates.

• Share this newsletter with your network and help spread the word!

Let's keep the conversation going!