Trump labels cartels terrorists; Times warns economic fallout


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As President Trump begins implementing his new policies, media outlets like The New York Times are expressing concerns over his latest executive action.

Trump’s first day in office saw him sign an executive order classifying Mexican drug cartels as foreign terrorist organizations. The order detailed how these cartels have launched campaigns of violence across the Western Hemisphere, destabilizing countries crucial to U.S. interests while flooding America with drugs and criminal elements.

“The Cartels have engaged in a campaign of violence and terror throughout the Western Hemisphere that has not only destabilized countries with significant importance for our national interests but also flooded the United States with deadly drugs, violent criminals, and vicious gangs,” the order stated.

“The Cartels functionally control, through a campaign of assassination, terror, rape, and brute force nearly all illegal traffic across the southern border of the United States.”

“In certain portions of Mexico, they function as quasi-governmental entities, controlling nearly all aspects of society.”

“The Cartels’ activities threaten the safety of the American people, the security of the United States, and the stability of the international order in the Western Hemisphere.”

“Their activities, proximity to, and incursions into the physical territory of the United States pose an unacceptable national security risk to the United States.”

The New York Times has raised economic concerns about this designation, suggesting it could harm U.S.-Mexico business relations due to potential sanctions violations.

“The foreign terrorist designation could lead to severe penalties — including substantial fines, asset seizures and criminal charges — on companies and individuals found to be paying ransom or extortion payments,” the Times reported.

“U.S. companies could also be ensnared by standard payments made to Mexican companies that a cartel controls without the American companies’ knowledge.”

“As a result, companies in the risk-averse American financial sector may simply refuse to wire money to a Mexican factory, for example, to facilitate cross-border production and trade, or to wire money between personal accounts.”

“If money transfer companies like Western Union also stop transactions to Mexico over worries about properly vetting Mexican clients, it could affect the remittances the country relies on.”

“That would be devastating for the Mexican economy, which received $63.3 billion in remittances in 2023, nearly 5 percent of the country’s gross domestic product.”

The designation, along with potential trade restrictions and tariffs, has negatively impacted the Mexican peso. Despite these challenges, Mexican President Claudia Sheinbaum has advocated for a measured response as her country faces accountability for its drug trafficking issues.

“It’s important to always keep a cool head and refer to the signed orders beyond the actual rhetoric,” she said at her daily morning news conference.

“That’s what counts before the law, strictly speaking.”