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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.

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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.

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“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.

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“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.

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International

Climate-driven rains trigger one of Indonesia’s deadliest flood emergencies in years

A torrential monsoon season, compounded by two unusual tropical cyclones, has triggered intense rainfall in several regions since last week, including southern Thailand, northern Malaysia, and large parts of Indonesia.

Climate change has recently intensified rainfall patterns, as a warmer atmosphere is able to hold more moisture. In Indonesia, desperation is growing among those affected by the disaster due to the slow pace of rescue operations and the distribution of humanitarian aid.

Relief agencies warned that the scale of the emergency is nearly unprecedented, even for a country accustomed to frequent natural disasters.

Across the island of Sumatra, the death toll was revised downward to 770 fatalities and at least 463 people still missing as of Wednesday night. Earlier, the national disaster management agency had reported 804 deaths.

Gathering accurate information on the ground remains difficult, as many regions are still cut off due to flood damage, widespread power outages, communication failures, or a combination of all three.

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International

Russian authorities ban Roblox citing child safety and moral concerns

Russia has blocked access to the U.S.-owned game creation platform Roblox, accusing it of distributing extremist materials and what authorities described as “LGBT propaganda,” state media reported on Wednesday.

The country has repeatedly threatened to ban certain foreign digital platforms, a move that human rights organizations view as part of broader efforts by authorities to tighten control over internet use.

In a statement released through Russian news agencies, the federal communications watchdog Roskomnadzor accused Roblox of hosting “inappropriate content that can negatively affect the spiritual and moral development of children.”

“The game exposes minors to sexual harassment, tricks them into sharing intimate photos, and encourages them to commit acts of depravity and violence,” the regulator claimed.

Last week, the same agency also threatened to ban WhatsApp, the country’s second most widely used messaging app, accusing it of failing to prevent criminal activity.

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Roblox, which is owned by the U.S.-based Roblox Corporation, did not immediately respond to a request for comment.

According to company data for 2024, the platform has around 100 million daily users worldwide, nearly 40% of whom are under the age of 13.

Other countries, including Qatar, Iraq and Turkey, have also restricted or banned Roblox, mainly over concerns about the safety of underage users. In the United States, the states of Texas and Louisiana have filed lawsuits against the platform on similar grounds.

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International

El Chapo’s son Joaquín Guzmán López pleads guilty to U.S. drug trafficking charges

Joaquín Guzmán López, one of the sons of notorious Mexican drug lord Joaquín “El Chapo” Guzmán, pleaded guilty on Monday to drug trafficking charges in a U.S. court, months after his brother Ovidio reached a similar plea agreement, according to local media reports.

The defendant appeared before a federal court in Chicago early Monday afternoon and changed his previous plea in the case, the Chicago Tribune reported. U.S. authorities accuse him of forming, together with his three brothers, the cartel faction known as “Los Chapitos.”

The group is believed to have continued the operations of El Chapo, who has been serving a life sentence in the United States since 2019.

Guzmán López, 39, was arrested after landing in Texas in a small aircraft alongside cartel co-founder Ismael “El Mayo” Zambada.

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