Why Mexico Just Hiked Import Taxes

Plus, this rule could void your residency

¡Hola amigos! This week, Mexico’s making big moves – from AI ambitions with Nvidia to turning Cancún’s sargassum problem into biogas. Los Cabos airport’s getting a $370M glow-up, import taxes are rising, and political funding is up for debate.

We’re also covering why 200 tons of mercury have been illegally exported from Querétaro, how CDMX is cracking down on property dispossession, and the handy Spanish phrase that’s sure to get you that parking spot. 

Plus, what to do if your residency card expires (don’t panic). Dive in!

rugby union parking GIF by Worcester Warriors

Gif by worcswarriors on Giphy

❓Mexico Trivia

Which Mexican pilot was dubbed the “Lindbergh of Mexico” and flew a goodwill mission to the U.S. in 1928?

Answer at the bottom of the newsletter.

📣 Qué Paso

📦 Mexico will raise import taxes on low-value packages from 19% to 33.5% starting August 15. The hike targets shipments under $2,500 from countries without a free trade deal – like China – affecting platforms like Shein and Temu. Packages from the U.S. and Canada remain under current USMCA tax rules.

🗳️President Sheinbaum announced a national survey asking Mexicans if political parties get too much public funding and whether party-list congressional seats should be eliminated. The proposal has already stirred pushback, especially from smaller parties, who argue it would disproportionately reduce their representation.

📉 Consumer confidence in Mexico dropped for the 7th straight month in July, falling to 45.9 points – down 1.2 points from last year.

📉 Wholesale trade in Mexico dropped 7.8% year-over-year in May – the third straight monthly decline and second-sharpest drop of 2025. INEGI data shows sectors such as textiles, ag supplies, and trade intermediation took the biggest hit, while retail sales rose 2.5% over the same period.

🇲🇽 Mexico is developing its own AI language model with support from Nvidia – part of the Latam-GPT initiative to boost regional tech autonomy. Officials say it could attract up to $9B in direct investment and help preserve Indigenous languages like Mixtec, Zapotec, and Nahuatl.

💸OXXO Pay launched “Retiro al Instante,” a new tool allowing businesses to send instant cash disbursements to recipients at 23,000+ OXXO stores – no bank account or app required.

🌿Cancún to open its first sargassum recycling center to turn seaweed into biogas, fertilizers, and carbon credits. Set in the hotel zone, the project aims to tackle beach pollution while generating green jobs and sustainable products.

✈️ FedEx is teaming up with the Mexican government to help businesses go global. As part of Plan Mexico, the initiative offers logistics support, financing, and digital tools to integrate micro, small, and medium-sized enterprises (MSMEs) into global supply chains and export markets.

✈️ Los Cabos Airport is getting a $370M USD upgrade over the next five years, adding new gates, terminals, biometric e-gates, and expanded runway space.

🏠 CDMX is cracking down on property dispossession with new penalties of up to 22 years in prison for offenders. A special task force and legal reforms will target fake documents, corrupt officials, and organized property theft rings.

🧪 Over 200 tons of mercury have been illegally exported from Querétaro’s Cristo Vive, El Mono, La Fe, and La Peña mines — fueling gold mining in South America. Officials say it’s “the largest illegal flow of mercury ever documented.”

🍎 Your Health Pulse

The Fine Print That Could Cost You Hundreds

Think your annual checkup in Mexico is fully covered by international insurance? Think again. Most global plans only include basic preventive care for adults — and only after a 10–13 month waiting period.

We’re talking physicals, bloodwork, and pap smears. That’s it. Mental health, reproductive health, and sleep disorders don’t count as preventive care. And if you have dependents? Their routine checkups come out of your pocket.

Click below to see what’s actually covered — and what you’ll be stuck paying for.

📍Immigration Essentials

What to Do If Your Temporary Residency Card Expires

If your Mexican temporary residency card has expired, or is about to, the steps you take next depend on where you are, how much time has passed, and how long you’ve held temporary status. 

First things first, you must physically be in Mexico. All residency card renewal or regularization applications must be processed in person at an immigration office in Mexico. Renewals cannot be completed outside the country or by a representative.

If your card expires while inside Mexico and you miss the 30-day window prior to its expiry date to renew the card, you must file a “regularization” procedure within a 60 calendar day period after the card’s expiry date. 

This process requires you to demonstrate economic solvency, submit supporting documentation (some of which must be apostilled and translated), and pay a late fee in addition to regular renewal fees.

If approved, you’ll be issued a new one-year residency card, but any years previously accrued toward permanent residency will be lost.

If your card expires while you’re outside Mexico, you may still be eligible to renew it, provided you return to Mexico within 55 calendar days of its expiration and submit your renewal application within 5 calendar days of re-entering the country. 

Both deadlines must be met. This option is only available if you have not yet completed four years of temporary residency.

If you're outside Mexico and more than 60 days have passed since your card expired, you can no longer renew it. You will need to begin the residency process again from a Mexican consulate abroad. The only exception is if you qualify through the Family Unity route, which may allow you to start the process from within Mexico despite the expiration.

You cannot renew your temporary residency card if:

  • More than 60 calendar days have passed since the card expired (regardless of whether you're inside or outside Mexico)

  • You have already completed four years of temporary residency and did not transition to permanent status in time.

In both cases, you must begin a new residency application from a Mexican consulate abroad, unless you qualify under Family Unity.

The best way to avoid this bureaucratic nightmare is to make sure you renew on time. Set a reminder, track your dates, and don't wait until the last minute.

🇲🇽 Viva México

Three Colors, Two Tales, One Iconic Dish

Mexico's captivating allure lies in its rich tapestry of layers, contradictions, and complexities. It's no wonder that the iconic chile en nogada, a dish as intricate as the country itself, boasts an origin story equally layered.

According to local legend, this dish was created in Puebla by the Clarisas nuns of the Santa Monica Convent in 1821 as a tribute to Agustín Iturbide when he returned after signing the independence of Mexico in Córdoba (Veracruz state).

The Clarisas nuns, inspired by patriotic spirit, wanted the dish to represent the three colors of the new Mexican flag: green (independence), white (religion), and red (union).

Tasked with creating a dessert for Iturbide, they made a dish that fused sweet and savory flavors with more than 25 ingredients.

Another story, told by Mexican writer and diplomat Artemio de Valle-Arizpe, presents a different version. In this tale, the dish was invented by three girls in love who commended themselves to San Pascual Bailón – Patron of cooks – to come up with a dish to celebrate the return of their three boyfriends from the Independence war.

The dish may have evolved from different family or local recipes, as there's no trace of chiles en nogada in any book, official document, or nuns' cookbook from the viceregal period.

Regardless of the exact origin story, the dish relies on seasonal ingredients that reach their peak just once a year, including poblano chiles, ripe walnuts, the sweet-and-crunchy panochera apple, sweet-milk pear, and the small, hard criollo peach. These ingredients are sourced from the region between Huejotzingo and Calpan, two towns close to Puebla city.

Can’t get enough chile en nogada?

Then head to the Chile en Nogada Festival in San Nicolás de los Ranchos, Puebla. The 2025 edition, titled Entre Volcanes y Sabores (“Between Volcanoes and Flavors”), brings together 50+ traditional cocineras every weekend in August at Unidad Deportiva El Ciprés. Expect live music, artisan markets, volcanic stone workshops, horseback rides, classic car expos, and guided tours to Popocatépetl and Iztaccíhuatl.

🪷 Viva Wellness

Peak Wellness: Mexico's Volcanic High

In Mexico, hiking a volcano isn’t just about the epic views – it’s a full-body reset. From your lungs to your mindset, high-altitude trails deliver real physical and emotional rewards.

When you hike at elevation, your body has to work harder. The thinner air forces your heart and lungs into overdrive, boosting red blood cell production and oxygen efficiency. 

The result? Better circulation, detoxification, and a radiant post-hike glow. (Hola, natural facelift.)

But the benefits go beyond the physical. Being in nature lowers stress hormones, improves cognitive clarity, and gives your nervous system a chance to exhale. 

And let’s be honest, it’s hard to sweat the small stuff when you’re standing on the rim of a crater, looking out over the clouds.

Best of all? Mexico is a volcanic playground, with at least 46 major peaks – many with well-marked trails suited for every level of hiker.

Here are a few of our favorites…

El Ajusco – Just outside Mexico City, this high-altitude forest is home to two of the capital’s tallest peaks: La Cruz del Marqués (3,930m) and Pico del Águila (3,880m). It’s one of the few places in CDMX that gets snow in winter and lies along the monarch butterfly migration route. 

Nevado de Toluca – At 4,680m, Mexico’s fifth-highest peak located in the State of Mexico is crowned by two crater lakes:  Lago del Sol and Lago de la Luna. You can drive partway up via a dirt road, though vehicle access is seasonally regulated.

Volcán Tacaná – At 4,092m, this Chiapas giant straddles the Guatemala border and is part of a UNESCO Biosphere Reserve. Trails wind through coffee farms, jungle, and sweeping southern views.

Pico de Orizaba At 5,636 meters, it is North America's tallest volcano. Known in Nahuatl as Citlaltépetl (“Star Mountain”), it straddles Puebla and Veracruz and feeds major rivers. Its alpine forests, páramo, and wildlife make it a bucket-list climb for experienced mountaineers.

🎉 Vamos! Events

🎺 Encuentro Internacional del Mariachi y la Charrería – August 2–September 7, Guadalajara 
Now in its 32nd year, this world-renowned celebration of Mexican culture brings together the soul-stirring sounds of mariachi with the elegance of charrería, Mexico’s national sport. With over 20 events across the city, this is the cultural highlight of the season. Don’t miss the symphonic mariachi concert featuring Pandora and Flans at Auditorio Telmex, or the grand finale concert with Dina Buendía at Plaza Juan Pablo II. Most events are free. Ticketed concerts start at $50 pesos. More info here.

🌺 Hummingbird Festival – August 12–16, Vallarta Botanical Garden
Celebrate nature’s tiniest aerial acrobats at the Vallarta Botanical Garden’s Hummingbird Festival. Expect guided walks, origami and thaumatrope workshops, photo challenges, and hands-on crafts for all ages, plus a chance to cool off in the jungle river. Garden admission is $300 pesos and workshop spots fill fast, so plan ahead. More info here.

🎭 Festival de la Cartonería 2025 – August 14–17, 2025, CDMX 
A whimsical celebration of Mexican folk art, this free four-day fest fills the Alameda with towering cardboard dolls, alebrijes, and mischievous diablos. Enjoy artisan markets, live music, hands-on workshops, storytelling for kids, and the fiery Quema de Judas on Saturday night. More info here.

🍦 Heladiza Fest – August 16–17, Parque de la Paz, Mérida 
Icy treats take center stage at this free, family-friendly festival in Mérida’s Parque de la Paz. Now in its third edition, Heladiza Fest brings together local brands and Yucatecan entrepreneurs offering artisanal ice cream, popsicles, gelato, iced coffee, chamoyadas, and more. Expect live music, sweet snacks, and activities for all ages. More info here.

🌺 Apapaxoa GastroCultural Festival Xcaret – August 26–31, 2025, Riviera Maya
This six-day festival fuses haute cuisine, art, and cultural storytelling across Hotel Xcaret Arte, Xcaret Park, and adjacent venues. Highlights include immersive "Savory Tales" talks, workshops, rooftop mixology, bioluminescent fishing outings, and exclusive tasting menus. Day passes start at MX$2,950, with access-all passes from MX$18,500. More info here.

🍫 Festival Chiapaneco del Cacao y Chocolate – August 29–31, San Cristóbal de las Casas, Chiapas
This mouthwatering festival celebrates Chiapas’s cacao heritage in the magical setting of MUSAC (Museo de San Cristóbal). Now in its 7th year, it features pop‑up markets from local chocolatiers, free tastings, workshops on artisanal chocolate-making, cacao history talks, and live cultural performances from indigenous artisans and musicians. Entry is free, with daily hours from 10 am to 6 pm. More info here.

🏊‍♂️ Triatlón AsTri Veracruz Boca del Río – August 30–31, 2025, Veracruz
One of Mexico’s oldest and largest triathlons returns to Playa Gaviotas, in the vibrant coastal city of Boca del Río. Set against the iconic Malecón, the swim takes place in calm Gulf waters while flat bike and run routes make it beginner‑friendly but still fast for elite athletes. With Sprint, Olympic, Junior, Super Sprint, WomanUp, 3‑Kids, Duathlon, and Relay categories – there’s something for every fitness level. More info here.

💡 Say It in Spanish

“Disculpe, ¿ya está por salir?”

Translation: Excuse me, are you about to leave?

This handy phrase is your polite way of saying: Are you done with that parking spot, señora?

Use it at the bank, in waiting rooms, on the bus, or when circling the block for the third time looking for parking.

Delivered with a smile, it's assertive without sounding pushy.

🎯 Mexico Trivia Answer

Captain Emilio Carranza.

Inspired by Charles Lindbergh’s historic 1927 flight to Mexico City, Carranza became Mexico’s aerial ambassador. Funded by everyday citizens and students, his goodwill journey from Mexico City to Washington, D.C. in the México-Excélsior was a symbol of binational friendship.

Tragically, his return flight ended in a fatal crash in New Jersey on July 12, 1928. Hours earlier, he’d received a telegram from the Mexican Secretary of War telling him to return without delay. While the exact text of the telegram from Mexico’s Secretary of War wasn’t officially released to the public, eyewitnesses, press reports, and members of Carranza’s circle described it as being forceful and urgent, leaving him little room to delay departure – despite the severe storm that night.

What did you think of today's issue?

Login or Subscribe to participate in polls.

Why El Expat Insider Mexico? Life abroad isn’t just about relocating — it’s about reinventing. Every sunrise in Mexico brings new opportunities to explore, learn, and connect. Whether you’re here for a season or a lifetime, we’re your compass for making the most of every moment. Because life’s too short to live on autopilot.

Want to reach globally minded readers living in Mexico? To become an El Expat Insider Mexico advertiser, click here.

Not Yet a Subscriber? Click Below to Get Our Newsletter Every Week — It’s FREE!