Mexico foreign investment stalls over USMCA uncertainty

New foreign investment in Mexico is slowing as companies express concern over trade uncertainty and the future of the USMCA pact. While established plants continue reinvesting, firms are hesitant to commit fresh capital to new projects.

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FILE PHOTO: The Lerdo-Stanton International Bridge at dawn on the day U.S. and Mexican trade negotiators meet for a third round of bilateral talks aimed at advancing the review of the North American trade agreement, as seen from Ciudad Juarez, Mexico, July 21, 2026. REUTERS/Jose Luis Gonzalez/File Photo

New foreign investment in Mexico fell 13% in the first half of 2026 as tariff threats from the United States and annual trade pact reviews unsettle executives. The slowdown comes despite record overall foreign direct investment reaching $35B in the same period, driven mostly by reinvested earnings. The drop highlights growing caution among foreign firms weighing long-term capital deployment south of the border.

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