American businesses operating in Mexico are facing challenges beyond tariffs

EL PASO, Texas (Border Report) — American businesses operating in Mexico are facing challenges beyond tariffs these days.

An increasing number of U.S. subsidiaries and their Mexican partners are encountering threats of extortion, truck hijacking, and attempts by criminals to force employees into participating in illegal activities, including drug trafficking, according to a recent report.

The report warns that cartel activities in Mexico could escalate if the Mexican and U.S. governments apply pressure that makes it less feasible for cartels to avoid targeting American interests. According to the 2025 Worldwide Threat Assessment report by Virginia-based security firm Global Guardian, "Cartel extortion of Mexican businesses is growing in both scale and target size, foreshadowing potential risks for American firms." The report emphasizes that without significant changes to Mexico's security situation, extortion will increasingly threaten Western companies operating within its borders. A survey conducted in 2024 by the American Chamber of Commerce in Mexico revealed that one in eight members reported organized crime exerting "partial control over sales, distribution, and/or pricing of their goods," as reported by the Associated Press. Michael Ballard, director of intelligence at Global Guardian, stated, "The number of firms in Mexico affected by organized crime and violence is relatively high.

" He pointed out that central Mexico serves as a manufacturing hub for exporting automobiles, appliances, and heavy machinery, raising concerns about the carjacking of shipments, theft of goods, and black-market reselling. "There are worries about infiltration by organized crime members, either through actual employment or coercion of executives," Ballard added.

The most common targets of these criminal enterprises are truck drivers, but executives managing vendor networks and supplies are also at risk. Global Guardian's report indicates that organized crime's targeting of multinational companies is particularly concentrated in the industrial region of Nuevo Leon, near South Texas, the Mexico City metropolitan area, and the cartel-plagued region of Guanajuato. Ballard noted, "Some cartels have used threats of violence to force their way into these companies' distribution networks to transport drugs or engage in human trafficking.

They often conceal cocaine, heroin, meth, and fentanyl within shipments that have already been cleared by U.S. Customs, making it easier to smuggle their products across the border." While some manufacturers at the border may be experiencing similar issues, quantifying the extent is challenging since employees in Mexico are often hesitant to report threats for fear of retaliation from criminals. "It's a precarious situation.

We've all seen disturbing images and videos of the brutal acts cartels have inflicted on rivals and informants," Ballard remarked. This dilemma places American firms in a difficult position, especially since the U.S. government has recently classified the largest Mexican cartels, such as Tren de Aragua, as foreign terrorist organizations. Consequently, anyone assisting or enabling these groups may face criminal charges and financial penalties. "It's a more serious issue than simply money laundering or accepting illicit funds," Ballard explained.

The international security firm is advising its clients in Mexico to enhance their financial compliance and consider appointing a security manager to regularly review operations and identify potential cartel infiltration.

Edited:Bosman
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