The Center for U.S. and Mexico’s Mexico Country Outlook 2025 offers expert insights on key issues shaping the future of the region, including economic reforms, regulatory changes, security concerns, and shifting political dynamics. This annual report also examines major challenges facing the Sheinbaum and Trump administrations and assesses their potential impact on U.S.-Mexico relations in the year ahead.

In 2025, Mexico’s current challenges are likely to worsen, as the recently inaugurated Claudia Sheinbaum Pardo administration (2024–30) has shown an unwillingness to depart from the policy playbook of the Andrés Manuel López Obrador administration (2018–24) — a playbook that has already proven unable to resolve most of the country’s problems.Political and diplomatic relations are headed for a rocky year, as Mexico drifts further away from a strategic allyship position with the United States on several items.