Trump Designates Mexican Drug Cartels as Terrorist Groups, Sparking Economic and Diplomatic Concerns

The executive order expands U.S. legal and military tools against cartels but raises fears of trade disruptions and strained relations with Mexico.

President Trump signed an executive order labeling Mexican drug cartels as Foreign Terrorist Organizations (FTOs), enabling harsher U.S. actions against them.
The designation allows for financial sanctions, asset seizures, and potential military action against cartels operating near the U.S.-Mexico border.
Critics warn the move could disrupt U.S.-Mexico trade, as American companies may face penalties for unknowingly engaging with cartel-controlled entities in Mexico.
The policy has sparked concerns over potential unilateral U.S. military interventions in Mexico, which could strain diplomatic relations with the country's government.
Economic experts highlight risks to industries like manufacturing, agriculture, and remittances, which are deeply intertwined with Mexico's economy and workforce.