On his first day back in office, President Donald Trump wasted no time in taking decisive action against Mexican drug cartels, signing an executive order that formally designates them as Foreign Terrorist Organizations (FTOs). This move, long discussed by policymakers and law enforcement officials, represents a significant shift in U.S. strategy against the cartels, which have long been responsible for the flow of dangerous narcotics, particularly fentanyl, into American communities.
“This is not just a drug crisis; it is a national security threat,” Trump stated while signing the order. “The Mexican drug cartels are operating as paramilitary organizations, using violence, terror, and corruption to maintain control over their criminal empires. This ends today.”
Tom Homan, the former acting director of Immigration and Customs Enforcement, reinforced Trump’s stance, stating that there are active discussions about potential military strikes on cartel strongholds in Mexico. “That’s something we’re working on now,” Homan revealed in a recent interview on Newsmax. He emphasized that while military action is not imminent, Trump is prepared to act swiftly if cartels escalate their threats against U.S. personnel. “President Trump has made it clear—if the cartels harm a Border Patrol agent or the military, he will wipe them off the face of the Earth.”
The Value of the Drug Trade and Its Influence
The global illicit drug market is estimated to be worth over $32 billion, with Mexican cartels controlling a substantial portion of that trade. The Jalisco New Generation Cartel (CJNG), one of the most powerful criminal organizations, has assets exceeding $20 billion, derived not only from drug trafficking but also from extortion, human smuggling, and the infiltration of legitimate businesses.
The cartels have extended their operations into seemingly legal industries such as avocado and lime farming, fuel theft, and tourism, making it increasingly difficult to separate criminal activities from legitimate economic ventures. “They are embedded in our economies in ways most people do not even realize,” said security specialist Ed Calderon. “When you eat an avocado, when you buy gas in Mexico, you might be indirectly funding cartel operations.”
The Risks to U.S. Companies and Citizens
While Trump’s move aims to choke off cartel funding and weaken their influence, the designation carries significant risks, particularly for American businesses operating in Mexico. U.S. companies involved in agriculture, tourism, and manufacturing could face sanctions if they unknowingly conduct business with entities tied to cartels. Financial institutions may also face tighter regulations, complicating cross-border transactions and creating new hurdles for businesses operating in both nations.
There is also a heightened risk of violent retaliation. Cartels have demonstrated their capacity for sophisticated, large-scale attacks, such as the 2019 “Black Thursday” uprising in Culiacán when the Sinaloa Cartel launched a violent offensive to force the release of one of its leaders. “These are not just street gangs; they have intelligence networks, military-grade weapons, and the ability to strike targets on both sides of the border,” former DEA official Mike Vigil warned. If the U.S. launches military action or increases enforcement, cartels could respond with acts of terror within American cities, targeting law enforcement officers or public spaces.
Does This Make Mexico an Enemy?
A critical question arising from Trump’s decision is whether it fundamentally alters the U.S.-Mexico relationship. Officially, Mexico remains a key ally, but the terrorist designation has caused significant friction between the two nations. Mexican President Claudia Sheinbaum has pushed back strongly, calling the move an attack on Mexico’s sovereignty. “We categorically reject the slander made by the White House against the Mexican government about alliances with criminal organizations,” she declared. “If there is such an alliance anywhere, it is in the U.S. gun shops that sell high-powered weapons to these criminal groups.”
Mexico has also threatened legal action against U.S. gun manufacturers, arguing that lax American firearm laws contribute to cartel violence. More than 70% of firearms recovered from crime scenes in Mexico can be traced back to U.S. gun dealers, according to the Bureau of Alcohol, Tobacco, Firearms and Explosives. If the diplomatic conflict escalates, Mexico could retaliate by limiting cooperation on border security or curtailing trade agreements, exacerbating economic instability.
The Threat to Mexican Sovereignty
One of Mexico’s greatest concerns is that the FTO designation could pave the way for unilateral U.S. military action within its borders. While Trump and his administration have not explicitly stated plans for cross-border raids, the possibility remains open. “If the Mexican government does not act, we will,” said Secretary of State Marco Rubio.
For Mexico, this is seen as an existential threat. Any incursion by U.S. forces, even with the justification of targeting cartels, would be viewed as a direct violation of national sovereignty. Defense Minister Ricardo Trevilla recently suggested that U.S. military aircraft may have already conducted surveillance operations over cartel-controlled areas without Mexican authorization.
The Economic Fallout for the U.S.
The economic consequences of this designation extend beyond strained diplomatic ties. Mexico is the U.S.’s largest trading partner, and designating cartels as terrorists could disrupt trade flows, supply chains, and financial transactions. American banks may hesitate to process transactions related to Mexican businesses, fearing they could be linked to cartel operations. This could lead to increased inflation on goods imported from Mexico and economic instability in sectors such as agriculture and manufacturing.
Furthermore, if Mexico retaliates by reducing security cooperation, the U.S. could see an influx of illegal immigration and drug trafficking, potentially worsening the very crisis Trump is attempting to combat.
Mexico’s Legal Counterattack
Mexico has already signaled its intent to counter Trump’s move through lawsuits against U.S. gun manufacturers and financial institutions. President Sheinbaum has accused American businesses of profiting from cartel-related violence, arguing that U.S. gun manufacturers are complicit in fueling the conflict. “The U.S. Justice Department itself has recognized that 74% of weapons used in Mexican criminal activity come from the north,” she stated.
If Mexico expands its legal strategy, American corporations could face costly lawsuits and potential restrictions, further complicating trade relations. U.S. businesses may also find themselves subject to heightened scrutiny if they operate in industries that are known to be influenced by cartel activities, whether directly or indirectly.
NP Editor: This is a difficult problem to solve, and all will depend on how much cooperation we can get from the government of Mexic0. Unfortunately, some sources say that the government of Mexico is bought and paid for by the drug cartels.
The cartels have an incredibly easy method of recruiting people to be on their side, be it law enforcement, judges, politicians or local businesses. the ‘plomo o plata’ or ‘lead or silver’ method goes something like this: “We would like to be your good friend and give you a million dollars if you would like to work with us, but if you don’t we will torture your wife and children in front of you and then kill you. Choose.” It is effective most of the time.
We do take issue with the notion that the national drug crisis should take a back seat to a security crisis. Drugs have been a very difficult national scourge for a long time.
