USA. Know Your Risk: Terrorist Designation of Cartels on Business Interests in Mexico

An Unconventional Risk That Should Not Be Ignored by Corporates with Operations Related to Mexico. 

Setting the Stage

Tariffs are hardly the only threat in the U.S.-Mexico Horizon

The recent proposals made by President-elect Trump in late 2024 to impose hefty tariffs to Mexican goods imported into the U.S. has seized the attention of many multinational companies with operations related to Mexico. The level of disruption that this would entail for North American supply chains, as already foreseen by an overwhelming number of commentators and trade experts,1 justifies the public anxiety. It also warrants the thorough scenario-based, material risk mitigation efforts that leading companies have launched. 

But there are other forms of U.S.-Mexico risk and disruption that are looming on the horizon that have, so far, received far less attention from the business community. The potential designation of Mexican drug cartels as foreign terrorist organizations (“FTOs”), which Trump promised to implement as soon as he is sworn in, stands out among them. 2 (FTI Consulting, USA, 20.01.2025)

https://www.fticonsulting.com/insights/articles/know-your-risk-terrorist-designation-cartels-business-interests-mexico