Overview

• President Trump signed an executive order labeling Mexican drug cartels as Foreign Terrorist Organizations (FTOs), enabling harsher U.S. actions against them.
• The designation allows for financial sanctions, asset seizures, and potential military action against cartels operating near the U.S.-Mexico border.
• Critics warn the move could disrupt U.S.-Mexico trade, as American companies may face penalties for unknowingly engaging with cartel-controlled entities in Mexico.
• The policy has sparked concerns over potential unilateral U.S. military interventions in Mexico, which could strain diplomatic relations with the country's government.
• Economic experts highlight risks to industries like manufacturing, agriculture, and remittances, which are deeply intertwined with Mexico's economy and workforce.