Mexico is sliding into full modo navideño this week, but the news cycle hasn’t quite gotten the memo. 

This week, Mexico’s Senate approved new tariffs, another interest rate cut is expected this week, and Mexico and the U.S. are busy working through several cross-border negotiations. We’re also covering what to know if you or your loved ones are bringing holiday gifts into Mexico and why Banxico is raising red flags around banking security.

One quick note before we dive in: we won’t be sending a newsletter next week. We’re taking time to unplug, be with family, and enjoy the holidays. We’ll be back on December 30. 

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❓México Trivia

Which modern holiday tradition has roots in an ancient Aztec flower known as Cuetlaxóchitl?

Answer at the bottom of the newsletter.

📣 México News Roundup

📦 Mexico approved tariffs of up to 35% on Chinese imports. Lawmakers estimate the measures, which take effect Jan. 1, 2026, will protect around 350,000 jobs.

🚭 Mexico officially passed the health reform banning the manufacture and commercialization of vapes and e-cigarettes, setting criminal penalties for suppliers while exempting consumers from prosecution. 

✈️ Frontier Airlines will launch new nonstop routes from Cancun to 3 major U.S. cities starting March 2026.

📉 Mexico’s central bank is expected to cut interest rates on Dec. 18 by 25 basis points.

📉 Private-sector analysts cut Mexico’s 2025 growth outlook again, forecasting GDP growth of just 0.37%. 

🧹 A new ITESO report estimates unpaid domestic and care work accounts for nearly 24% of Mexico’s GDP, with women generating more than 70% of that value.

📜 The U.S. and Mexico signed Minute 333, a new agreement committing both countries to infrastructure upgrades to address the Tijuana River sewage crisis.

💧 President Sheinbaum asked the United States for more time to deliver water under the 1944 treaty as negotiations continue over drought-related shortages.

⛏️ A shift in federal policy on environmental and water permits has reactivated more than US$11 billion in mining investment across Mexico. 

🐖 Mexico’s Economy Ministry launched an antidumping investigation into U.S. pork legs and shoulders following complaints from domestic producers of unfair pricing.

😳 Mexico City lawmakers descended into shoving and hair-pulling during a heated Congress debate over scrapping the city’s transparency agency. 

🚴‍♂️ After 6 months and more than 3,000 kilometers cycling from the Maya Zone of Quintana Roo to Los Cabos in honor of his mother and the Virgin of Guadalupe, pilgrim Santiago Caamal returned home on Dec. 12. Watch his triumphant return here. (Warning: tissue alert!)

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🍎 Your Health Pulse

Do You Need Two Health Policies if You Split Time Between Countries?

If you divide your time between Mexico and another country, do you really need two health insurance policies?

It depends on where you’re spending the rest of your time.

If your other country is the U.S. - It comes down to how much time you’ll spend there. If you’re only in Mexico for about three months a year, a short-term travel plan is usually the best fit instead of paying for a full comprehensive policy. But if you live in Mexico and spend only a couple of months in the U.S., you don’t need a separate policy – as long as your international plan in Mexico includes global coverage that specifically covers the U.S.

If your other country is Canada - Canada’s provincial care requires you to be there about 180 days per year to keep using that system. If you don’t meet that threshold, confirm with your international policy that you’ll be covered while in Canada. If not, a travel plan is a smart way to protect against major illness or accidents.

If your other country is neither the U.S. nor Canada - As long as your Mexican policy is global and the second country is not your passport country, there’s usually no need for two separate policies.

If you’re registered with IMSS - Your coverage only applies within Mexico. If you're traveling outside the country – even for a short trip – a travel policy is essential to make sure you're covered in case of emergencies.

Need help figuring out the right coverage mix? Whether you're looking for international health insurance, short-term travel coverage, or a second policy for time spent abroad, a vetted broker can walk you through the options.

📍Immigration Essentials

Bringing Holiday Gifts into Mexico? Here’s What You Need to Know

Whether you’re arriving in Mexico or coming back after the holidays, there are clear limits on what you can bring in tax-free…and what gets taxed.

Travelers entering Mexico are allowed to bring up to $500 USD worth of merchandise without paying tax. This is called the franquicia, or exemption. This amount is on top of your personal luggage and applies whether you arrive by air, land, or sea.

If the value of your extra items exceeds the $500 exemption, you are still allowed to bring them. You’ll just pay a 19% tax on the amount that goes over the limit. For example, if you return with $800 USD worth of items, you pay 19% on the extra $300, which comes out to $57 USD.

This tax is known as the excedente de franquicia. 

As long as the total value of your goods is under $3,000 USD (or $4,000 USD if you’re bringing in computer equipment), you don’t need a customs broker. The duty can be paid directly at customs when you arrive.

If you're traveling with family, you can combine your exemptions as long as you all arrive together on the same flight or transport.

Customs officials may ask to see receipts for newly purchased items. If you're bringing electronics, clothing, toys, or other gifts, be ready to show proof of value.

Items not included in the $500 exemption include:

• Alcoholic beverages

• Cigarettes or tobacco

• Fuel beyond the gas tank of your vehicle

Click here for the full list of rules and exemptions.

🧩 Life in México

Cybercrime in Mexico’s Banking System: What Banxico Just Reported

Mexico’s central bank just released its Financial Stability Report (Reporte de Estabilidad Financiera), and it’s not surprising that cybersecurity is a growing concern.

The report highlights key risks to the financial system, including how digital banking platforms, payment apps, and financial institutions are being targeted by increasingly sophisticated cyber threats.

This year, the Cybersecurity Index for Financial Institutions rose from 85% to 88%, showing stronger internal response systems. But at the same time, the number and complexity of cyberattacks have increased – especially those using artificial intelligence to exploit user data or mimic legitimate banking platforms.

Between June and August 2025, there were 3 cyber incidents involving banks or financial institutions. None impacted user funds, but all exposed vulnerabilities – particularly among third-party tech providers that support banking apps and transfer services.

Banxico is also tracking a sharp rise in supply chain attacks, where hackers break into third-party tech companies that work with banks. These attacks can lead to stolen credentials, fake banking portals, or fraudulent transactions.

The report also flagged an increase in AI-generated phishing campaigns, where emails or websites appear nearly identical to real financial platforms – making it harder for users to spot red flags.

While the system has held up so far, risks are increasing. If you use online banking or digital wallets, here’s how to protect yourself:

• Use two-factor authentication on all banking and financial apps.

• Avoid logging into accounts on public Wi-Fi without a VPN. Proton VPN works great in Mexico and is currently 75% off. 

• Bookmark official bank websites and avoid clicking on links from messages.

• Turn on transaction alerts to spot fraud fast.

• Don’t store login details or sensitive info in notes or emails.

• Create unique passwords for each bank or fintech platform – or make life easier with a secure password manager like Proton Pass.

• Make sure your banking app is secured with a PIN or biometric lock.

• Beware of phishing attempts, especially emails or texts that mimic your bank. Always check the sender’s email address before clicking anything.

• If you suspect an email or call from your bank is fraudulent, go directly to your bank branch and verify the information in person – do NOT respond or click anything.

🇲🇽 Viva México

Charro Chic: How Mariachi Became Mexico’s Cultural Icon

That unmistakable sound. The blinged-out suits. The embroidered sombreros.

Mariachi is iconically Mexican.

But today’s polished look and distinctive brass sound would have stunned the early musicians who once roamed Mexico’s countryside.

The mariachi of over 200 years ago wore loose cotton shirts and straw hats. The instruments were all strings. Trumpets came later. They traveled on foot from village to village, playing at religious festivals and roadside fiestas.

Everything changed after the Mexican Revolution. 

As the country sought to rebuild and redefine itself, mariachis were chosen to help shape a new cultural identity. To elevate them as a national symbol, post-revolution leaders reimagined a traditional charro suit.

They introduced a more elegant version: a tailored jacket, fitted pants embellished with embroidery and metallic botonaduras (buttons with chains attached), and a dramatic sombrero with a wide brim. 

Women were given a matching look with an ankle-length skirt. Like the men's trousers, it featured elaborate decorations down the sides. 

This makeover wasn’t about fashion; it was a cultural strategy. 

Mariachis were transformed into living symbols of mestizo pride, a powerful blend of Indigenous and Spanish heritage. 

Today, you’ll find mariachis in plazas across the country, taking song requests on the spot, or performing at birthdays, weddings, and even funerals.

Their repertoire is vast, and most songs fall into four styles: 

• Sones – traditional and lively 

• Rancheras – emotional ballads 

• Corridos – narrative folk songs 

• Boleros – romantic slow dances

Whether it’s a rousing "Cielito Lindo" in a lively plaza or a tearful "Amor Eterno" at a gravesite, mariachi is Mexico’s most soulful soundtrack. 

Watch this short video on botonaduras – the materials, types, and craftsmanship behind mariachi’s most iconic detail. 

🪷 Viva Wellness

9 Mexican Cold & Flu Remedies for the Season

Got sniffles? Feeling achy? Before you run to the pharmacy, why not test out a few traditional Mexican remedies for relief. 

Herbal teas, steam inhalations, and simple plant-based treatments have been used for generations to ease congestion, calm coughs, soothe sore throats, and support recovery. Many of these ingredients are easy to find, affordable, and already familiar if you’ve spent any time shopping at mercados or neighborhood tiendas.

We rounded up 9 go-to remedies, including how they’re typically used and how to prepare them at home.

Read more.

💡 Say It in Spanish

Navideño / Navideña

Want to sound less textbook and more local this holiday season? Go navideño.

Navideño is an adjective that means Christmas-themed. Sure, you can say mercado de Navidad…it’s grammatically correct. But mercado navideño is smoother, more natural, and a lot more Mexican.

Think of navideño as the all-purpose shortcut used for anything that feels like Christmas:

• Comida navideña – holiday food

• Decoración navideña – Christmas décor

• Ropa navideña – yes, festive sweaters count 

• Ambiente navideño – Christmas vibes

• Temporada navideña – the holiday season

• Espíritu navideño – that warm, fuzzy Christmas feeling

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🎯 Trivia Answer

The Nochebuena, known in Nahuatl as Cuetlaxóchitl.

Long before it became a global symbol of Christmas, the poinsettia held deep meaning in pre‑Hispanic Mexico. The Aztecs called it Cuetlaxóchitl, a compound Nahuatl word formed from cuetlaxtli (leather or tough skin) and xóchitl (flower) – a reference to its thick, resilient bracts, often mistaken for petals.

But this flower wasn’t admired for beauty alone. Its intense red color linked it to life force and sacrifice, giving it sacred significance in Aztec culture. Cuetlaxóchitl was used in rituals and ceremonial offerings, symbolizing vitality, renewal, and spiritual power.

Centuries later, Spanish missionaries reinterpreted its deep red hue within Christian tradition, tying it to the Christmas season…transforming an ancient sacred plant into the iconic Nochebuena we know today.

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