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¡Hola amigos! It’s been a lively few days on the U.S.–Mexico front. President Trump is threatening new tariffs, Mexico is denying rumors about secret agreements and mass extraditions, the U.S. Treasury ruffled President Sheinbaum's feathers over remittances, and the two presidents finally met face-to-face for the first time.

Plus, we’re breaking down what you need to know about Mexico’s new Water Law, five Spanish words that can trip you up in the most awkward ways, and a look at the story and tradition behind Día de Guadalupe.

Whew. We’ve got a lot to unwrap this week…so let’s get to it.

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❓México Trivia

Which Mexican scientist ended up in a one-on-one showdown with Einstein behind closed doors?

Answer at the bottom of the newsletter.

📣 México News Roundup

🇺🇸 Trump threatened a 5% tariff on Mexico if it doesn’t increase water deliveries under a 1944 treaty, saying the country owes 800,000 acre-feet and must send 200,000 by December 31.

📦 Mexican lawmakers will debate this week a plan to raise tariffs by up to 50% on imports from China and other Asian countries without trade pacts.

🏦 SAT has officially denied viral claims that it is freezing bank accounts for missed tax filings.

🤝 After their first in-person meeting last week, Sheinbaum and Trump exchanged invitations for official visits, with Sheinbaum calling the meeting “very positive.”

🔗 President Sheinbaum firmly denied rumors that she and President Trump had agreed to a new mass extradition of criminal leaders to the U.S.

💸 In response to the U.S. Treasury’s new alert tightening oversight of remittances to Mexico, President Sheinbaum explicitly rejected the claim that remittances are used for money laundering.

​​🦬 Mexico introduced 44 protected bison into Coahuila’s El Santuario reserve to support American bison recovery and restore Chihuahuan Desert grasslands.

⚽ President Sheinbaum said she’ll skip the 2026 World Cup opener to watch from the Zócalo.

💰 Last week, Mexico announced its daily minimum wage will rise 13% starting January 1, 2026.

🇲🇽 The Senate approved a “Made in Mexico Day” on the second Friday of September, pending final approval by the Chamber of Deputies. 

📍Immigration Essentials

Don’t Let Holiday Travel Cancel Your Residency

Holidays travel can be the perfect storm of immigration slip-ups if you aren’t careful.

If you hold temporary or permanent residency, your re-entry must be processed manually – do not use the passport scanner kiosks at the airport. These scanners are only for tourists. If you use one, you’ll be incorrectly admitted as a visitor, which voids your residency and requires you to restart the process at a consulate.

Also, if you lose your resident card while outside Mexico, you’ll need to make an appointment at a Mexican consulate to obtain a replacement visa before re-entering. Do not enter as a tourist because it will cancel your residency. 

Aguinaldo Math Made Simple

Use our FREE Aguinaldo Calculator to easily see what to pay your staff before the December 20 deadline.

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🧩 Life in México

New Water Law Raises Alarms: What You Need to Know

Mexico's new General Water Law marks a major shift in how the country governs access to water. The Chamber of Deputies approved the law on December 4, 2025, and the Senate approved it on December 5, 2025.

Fast-tracked through Congress, the law recognizes water as a human right, ends private trading of water concessions, and places control of all transfers under the federal water agency, CONAGUA. Supporters say it brings long-overdue accountability and protects against corruption and speculation. 

But critics argue that the law could undermine community autonomy and create confusion around water access.

Key provisions include:

• Water is no longer treated as a tradable commodity. Concessions cannot be sold or transferred privately; they must be returned to the state and reassigned by CONAGUA.
  

• Landowners may still sell or inherit water rights, but only if transferred along with land and approved through official channels.
  

• Water use is now prioritized for domestic and ecological needs over agricultural or industrial use during shortages.
  

• A new public water registry (REPNA) will be created to centralize concession data and increase transparency.
  

• Criminal penalties – including prison terms – now apply to unauthorized use, resale, or falsification of concessions.

Why It’s Raising Concerns

The law has drawn sharp criticism from across sectors, especially agriculture, civil society groups, and parts of the business community.

For farmers and landowners, the biggest concerns are:

• Loss of land value. Without transferable water rights, agricultural land may drop in value, particularly for those who rely on irrigation.

• Uncertainty around water access. New rules for inheritance and transfer are seen as vague and subject to political discretion.

• Criminal penalties. Harsh fines and potential prison terms apply even to administrative mistakes.

• Broken promises. Farming groups say last-minute changes ignored key agreements made during negotiations.

Civil society and water activists argue the law falls short in key areas:

• Over-concessioning remains unaddressed. Critics say it doesn’t rein in industrial overuse or protect vulnerable local supplies.

• Polluters go unchecked. The law is seen as weak on enforcement against large-scale contamination.

Here’s the full bill, if you’re so inclined to read it. 

7 Ways to Take Control of Your Legacy

Planning your estate might not sound like the most exciting thing on your to-do list, but trust us, it’s worth it. And with The Investor’s Guide to Estate Planning, preparing isn’t as daunting as it may seem.

Inside, you’ll find {straightforward advice} on tackling key documents to clearly spell out your wishes.

Plus, there’s help for having those all-important family conversations about your financial legacy to make sure everyone’s on the same page (and avoid negative future surprises).

Why leave things to chance when you can take control? Explore ways to start, review or refine your estate plan today with The Investor’s Guide to Estate Planning.

Download your free guide now!

🇲🇽 Viva México

Celebrating La Virgin de Guadalupe: The Soul of Mexico

Marking the start of Christmas celebrations on December 12, Mexico celebrates La Virgen de Guadalupe, the country’s beloved patron saint.

The atmosphere is joyful, even among the exhausted pilgrims, some of whom walk hundreds of miles to reach the Basilica de Guadalupe in Mexico City.

At midnight on the 11th, millions of people gather at the shrine in Mexico City, along with mariachis, choirs, and celebrities, to serenade Our Lady of Guadalupe with "Las Mañanitas" (the Mexican birthday song). 

While this holy site draws the largest crowds (an estimated 18-20 million throughout December), Día de Guadalupe transforms every corner of Mexico into a festival. 

From pueblitos to cities, street vendors sell delicious buñuelos, tamales, and steaming cups of champurrado. Families attend masses and share festive meals. 

There are colorful parades with young girls in traditional embroidered blouses and skirts, and boys in simple cotton clothing. These costumes honor the man whose vision shaped Mexico’s soul.

In 1531, the Virgin appeared to Juan Diego. She spoke in Nahuatl, his native tongue. With dark skin and a turquoise mantle like Aztec nobility, she appeared both divine and familiar.

She told Juan Diego to ask for a shrine to be built in her honor. When the skeptical bishop demanded proof, her image miraculously appeared on his cloak. 

The cloak is now enshrined at the Basilica on Tepeyac Hill. For generations, the Nahua people had honored their mother goddess, Tonantzin, on that same site.

Seen as a divine sign by Catholics and sacred by Indigenous communities, La Virgen de Guadalupe united two spiritual worlds. 

These days her image appears everywhere, from neighborhood shrines, to murals and phone cases. She’s an enduring symbol of Mexico’s faith and cultural identity.

🪷 Viva Wellness

Pacing Your Posadas: Tips to Enjoy the Christmas Run-Up

The Christmas season kicks into high gear with the first posada on December 16. Each night until Christmas Eve, communities reenact Mary and Joseph’s search for la posada (lodging) with dusk processions, songs, food, and drink.

But in modern Mexico, posada has grown to mean any holiday gathering: school parties, office fiestas, neighborhood celebrations, and the standing invitation from every friend who insists, “¡Tienes que venir!” 

Before you know it, December becomes one long, beautiful…and exhausting…pilgrimage of its own.

Here are our tips to enjoy the magic without burning out:

Pace yourself. Expect long evenings, multiple gatherings, and a rhythm that builds as Christmas approaches. 

Don’t over-plan.  Posadas can start late and run long. Trying to do too much can mean missing the events you’d enjoy most. 

Keep it simple. Buy food instead of cooking it, bring drinks instead of a dish, or even offer to bring candy to fill the piñata.

Say NO. Not every holiday event needs to be on your calendar. Prioritize gatherings that truly bring you joy.

Celebrate mindfully. Focus on the meaning behind the season – the warmth of community, faith, and togetherness – and let go of unnecessary pressure.

🎉 ¡Vamos! Events

Candlelight Christmas Concerts – December, Various Mexican Cities
Mexico celebrates the holiday season with intimate candlelit classical music concerts across the country, featuring elegant performances in beautifully decorated venues illuminated by thousands of flickering candles. More info here.

Guillermo del Toro Film Cycle – Now - Dec 18, Mexico City
Mexico City celebrates the visionary work of acclaimed filmmaker Guillermo del Toro with a free film cycle at Centro Cultural Futurama, featuring iconic films and series spanning different genres and stages of the director's celebrated career. Screenings run daily at 12:00 and 17:00 hours with free admission. No tickets or reservations required. More info here.

Verbena Navideña del Zócalo – Dec 20–Jan 4, Mexico City
CDMX transforms the Zócalo into a festive holiday fair with monumental decorations, pastorelas, artisan stalls, food areas, and family activities, all free and open daily as part of the city’s Christmas celebrations. More info here.

💡 Say It in Spanish

Some Spanish words feel familiar…until you say them out loud. These common false friends trip up plenty of non-native Spanish speakers – often in ways that are more awkward than expected.

Here are 5 words that made our top-mistakes list…

Constipado
If you say you’re constipado, don’t be surprised if someone offers you a tissue, not a remedy for digestion. In Mexico, constipado means you have a cold or nasal congestion. For constipation, the word is estreñido.

Éxito
This word has nothing to do with exits. In fact, it's the opposite. Éxito means success. If you're looking for the way out of a building, you're looking for the salida.

Gracioso
It doesn’t mean gracious, and it definitely doesn’t mean grateful. Gracioso means funny…or in some contexts, a little irritating. To say you're thankful, use agradecido. Saying “Estoy gracioso” might just get you a laugh you didn’t intend.

Asistir
You didn’t help – you showed up. Asistir means to attend, not to assist. So if you say “Asistí al evento,” you're saying you were present, not that you helped organize it. If you want to say you lent a hand, the verb is ayudar.

Actualmente
This doesn’t mean “actually,” it means “currently.” It’s a small difference that can lead to big confusion. “Actualmente vivo en Oaxaca” means you live there now, not that you’re correcting someone. For “actually,” try en realidad or de hecho.

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🎯 Trivia Answer

Carlos Graef Fernández.

Graef, a 33-year-old Mexican physicist, was invited to Einstein’s home in Princeton in December 1944 to discuss a new gravitational theory he had been helping develop.

He and his colleague Alberto Barajas had worked closely on George David Birkhoff’s alternative model: a flat spacetime filled with a “perfect fluid,” a bold departure from Einstein’s curved universe.

Inside 112 Mercer Street, the two launched into a spirited, philosophical duel. Einstein dismissed the fluid as a step backward; Graef countered by reminding him that Einstein himself had once revived the old idea of light particles — today’s photons. Einstein ended their exchange with a smile and a shoulder pat: “Graef… you are a born rebel.”

The debate ended without a winner, but the moment marked a turning point for Mexican science. Graef went on to become a foundational figure in Mexico’s scientific rise, helping build the country’s nuclear research infrastructure and training generations of physicists who would shape Mexico’s modern scientific landscape.

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