Nepo Slip, Transparent U.S. Predation, and the Old–New Investment Council

Mexico Decoded’s weekly briefing makes sense of the news that matters

1. Trump’s Predator Economy

The Trump administration’s National Security Strategy lays out a plan to use U.S. economic and political muscle to secure privileged deals for American companies in Latin America. For partners like Mexico, it even calls for exerting pressure to win exclusive contracts and to curb the development of advanced local technologies.

Decoded:

This shift matters for Mexico’s private sector. While the U.S. is aggressively backing its companies to dominate key sectors, many Mexican entrepreneurs remain paralyzed by pessimism, delaying investments and expansion. That gap in attitude becomes a competitive disadvantage. If local businesses want to withstand a more predatory U.S. strategy, they’ll need to invest with far more confidence.

2. Sheinbaum’s New Investment Council is Old News

President Sheinbaum announced the creation of an “investment council” packed with Mexico’s wealthiest business elites, including billionaire Carlos Slim. The group is meant to help stimulate investment amid a slowing economy and reassure markets of political stability.

Decoded:

Low growth has pushed Sheinbaum to lean on the same business elite whose fortunes were built on rent-seeking rather than innovation. In other words: the president is returning to the old oligarchs for help — even though they’re not the ones who will transform the economy.

3. Mexico Passes a Watered-Down Water Law

After weeks of protests and negotiations, Congress finally approved a new water law. Successive governments had avoided it because regulating water concession holders, many of them business and political elites, carried too high a political cost.

Decoded:

The law delivers some real gains — including stronger registries and limits on water black markets — but interest groups secured major carveouts. Water rights can still be inherited, tax evasion will persist, and infrastructure can still be privatized. Better than nothing, but far from the structural reform Mexico needed.

4. Car Tax Race to the Bottom

Mexico City raised the maximum vehicle value exempt from its recurring car tax to USD $35,000 for the first quarter of the year. The capital is one of just 15 of Mexico’s 32 states that still charge this tax.

Decoded:

Since the federal government scrapped the car tax in 2012, states have engaged in a race to the bottom—cutting or eliminating it to win over car-owning voters. It’s a reminder of why states can’t be trusted with essential tax bases.

5. Dua Lipa’s Nepo Slip

Dua Lipa closed her world tour with three sold-out nights in Mexico City — and celebrated by opening “La Dua,” a downtown taco pop-up that quickly drew governors and former presidential candidates eager to look youth-friendly.

Decoded:

Her opening act was Bu Cuarón — daughter of Mexican filmmaker Alfonso Cuarón — who has no notable singles or releases. Dua’s casual validation of a local nepobaby landed poorly. The crowd’s loud boos made that clear.