International
Uncertainty about Trump’s tariffs is sharpening in the heart of the Mexican maquila

Uncertainty is exacerbated on the northern border of Mexico as one week has been completed by the tariffs of the president-elect of the United States, Donald Trump, which unsettles, in particular, Ciudad Juárez, the epicenter of the Mexican maquila.
Data from the Association of Maquiladoras and Exporters of Ciudad Juárez (AMAC) show that about 70% of local exports go to the US market, which makes the city, bordering the US El Paso, Texas, especially vulnerable to trade restrictions.
In addition, Juárez hosts more than 300 maquiladoras, which employ about 300,000 people to produce everything from medical devices to auto parts.
Therefore, “the border would be the most affected” with the 25% tariffs that Trump announced last week, “with the loss of jobs, probably with factory closures, probably with high inflationary costs,” said Martha Bárcena, former ambassador of Mexico to the United States (2018-2021).
“So the main stakeholders are the entire border strip in which there is not this trade war, but on the contrary that there is cooperation, as the president (Claudia Sheinbaum) has said. Without a doubt, it is a difficult scenario that has been seen today,” he said in an interview.
Threat of tariffs: risks on both sides of the Mexico-US border.
Trump shook the region’s economy by announcing on Monday of last week that one of his first executive orders will be to impose tariffs of 25% on “all products” of Mexico and Canada, until the “invasion” of illegal migrants and drugs, in particular fentanyl, is “stopped.
The president of Mexico trusted last Friday that there will be no tariffs after talking on the phone with Trump, while the Mexican government argues that the United States would lose 400,000 jobs and suffer from inflation, such as an additional 3,000 dollars per van, for example.
Economist Alejandro Sandoval Murillo, president of the Mexican Institute of Finance Executives (IMEF) in Juárez, told EFE that “tariffs are a tax that is placed to import, affecting the price of the product and making it less competitive in the face of existing alternatives.”
“The question of imposing tariffs on Mexico is whether (in the United States) they have alternatives to Mexican production, which is obviously not China, because China is the main problem. In that sense, if there is not, the American consumer will have to absorb that tariff and the damage is for them,” he warned.
Impact on small entrepreneurs and consumers
Although the most immediate impact is felt in large industries, small entrepreneurs also face challenges.
“Chihuahua is fundamental in those border states because, besides, Texas is our first trading partner. With them we trade more than 216 billion dollars a year. So I think we should seek that renewed dialogue between the governor of Texas (Greg Abbott) and the governor of Chihuahua (María Eugenia Campos),” Bárcena said.
For workers, uncertainty is also palpable in the face of possible low wages and challenging working conditions.
“The fact that consumers stop spending so much will cause company closures. That is the type of consequences that can begin to occur if, and only if, things evolve negatively, tariffs, reactions, reprisals, etc., towards a negative direction,” Sandoval Murillo warned.
In the face of the adverse scenario, local and federal authorities have tried to mitigate the effects of tariffs through tax incentives and support programs for affected companies.
But many entrepreneurs consider these measures to be insufficient in the face of the impact of US trade policies.
“Because neither government can afford that luxury (of tariffs) and emphatically the Mexican government cannot under any reason. But the Mexican government I don’t mean (only) the federal one. This is a joint work between the subnational, state and municipal, along with the federal,” the economist concluded.
International
Paraguay summons Brazilian ambassador over Itaipú espionage scandal

Paraguay summoned the Brazilian ambassador in Asunción on Tuesday to demand “explanations” and called its own representative in Brasília for consultations following Brazil’s acknowledgment of an espionage operation. The Brazilian government, led by President Luiz Inácio Lula da Silva, attributed the operation to the previous administration.
The surveillance effort aimed to uncover Paraguay’s position in now-suspended negotiations with Brazil regarding the pricing of electricity from the binational Itaipú hydroelectric plant, according to reports in the Brazilian press.
The Brazilian government “categorically denied any involvement in the intelligence operation,” stating in a Foreign Ministry communiqué on Monday that the espionage was carried out under former President Jair Bolsonaro’s administration (2019-2023).
“The operation was authorized by the previous government in June 2022 and was annulled by the interim director of the (state intelligence agency) ABIN on March 27, 2023, as soon as the current administration became aware of it,” Brazil’s government asserted.
Paraguay’s Foreign Minister Rubén Ramírez announced that Brazilian Ambassador José Antonio Marcondes de Carvalho was summoned “to provide detailed explanations” regarding the operation. Additionally, Paraguay recalled its diplomatic representative in Brasília “to report on aspects related to the intelligence activity conducted by Brazil regarding Paraguay’s government affairs.”
International
Elon Musk to step down as government advisor, per Trump insiders

President Donald Trump has informed his inner circle that Elon Musk will be stepping down from his role as a government advisor, according to a report by Politico today.
Citing three individuals close to Trump, Politico states that the president is pleased with Musk’s leadership at the Department of Government Efficiency (DOGE), where he has implemented significant budget cuts. However, both have agreed that it is time for Musk to return to his businesses and support Trump from a different position outside the government.
A senior administration official told Politico that Musk will likely maintain an informal advisory role and continue to be an occasional visitor to the White House. Another source warned that anyone thinking Musk will completely disappear from Trump’s circle is “deluding themselves.”
According to the sources, this transition is expected to coincide with the end of Musk’s tenure as a “special government employee,” a temporary status that exempts him from certain ethics and conflict-of-interest regulations. This 130-day period is set to expire in late May or early June.
International
Milei vows to make Argentina so strong that Falkland Islanders “choose” to join

Argentine President Javier Milei reaffirmed his country’s claim over the Falkland Islands (known as the Islas Malvinas in Argentina) and praised the role of the nation’s armed forces during a ceremony marking the “Veterans and Fallen Soldiers of the Malvinas War Day,” commemorating 43 years since the 1982 conflict with the United Kingdom.
Argentina continues to assert sovereignty over the islands, arguing that Britain unlawfully seized them in 1833.
“If sovereignty over the Malvinas is the issue, we have always made it clear that the most important vote is the one cast with one’s feet. We hope that one day, the Malvinas residents will choose to vote with their feet and join us,” Milei stated.
“That is why we aim to become a global power—so much so that they would prefer to be Argentine, making deterrence or persuasion unnecessary. This is why we have embarked on a path of liberation, working to make Argentina the freest country in the world and once again the nation with the highest GDP per capita on the planet,” he added.
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