Trucks circulate at the southern border
Trucks circulate at the southern border Photo by SANDY HUFFAKER/AFP via Getty Images

American companies operating in Mexico are facing mounting threats, including extortion, hijackings, and coercion by cartels, according to a new report by Virginia-based security firm Global Guardian.

The study, titled 2025 Worldwide Threat Assessment, warns that cartel extortion of businesses has increased in both scope and scale, posing a growing risk to U.S. firms. The report suggests that unless Mexico's security environment undergoes substantial change, these threats will continue to escalate.

"(The number) of firms operating in Mexico impacted by organized crime and violence in some way is a relative high number," said Michael Ballard, director of intelligence for Global Guardian. "Central Mexico is a manufacturing hub for the export of cars, appliances, heavy machinery ... they are concerned about carjacking of those shipments, theft of goods and black-market reselling.

The threats are especially pronounced in regions such as Nuevo Leon, the Mexico City metropolitan area, and Guanajuato, where cartels are engaged in violent territorial disputes. Ballard noted that organized crime groups have in some cases forced their way into distribution networks to transport drugs or human trafficking victims, leveraging the legitimacy of multinational companies to move illicit goods undetected:

"They basically hide cocaine, heroin, meth, fentanyl in shipments that have been pre-cleared by U.S. Customs. It's an easy way to get their product across the border"

While some firms may be experiencing cartel-related threats, the true extent of the issue is difficult to quantify, as employees often fear retaliation and hesitate to report such incidents. Additionally, the U.S. government's designation of Mexican cartels as Foreign Terrorist Organizations (FTOs) means that companies caught aiding cartel activities, even under duress, could face legal consequences beyond financial losses.

Although many critics have lauded the FTO designation, some have acknowledged that that eliminating cartel operations entirely is unrealistic. In a recent interview with The Latin Times, former DEA Special Agent Brian Townsend described cartels as highly adaptable, decentralized organizations that function more like franchises than traditional criminal syndicates.

"Major decision-making is happening throughout the organization," pointing to the continued power of the Sinaloa Cartel despite the imprisonment of its former leader, Joaquín "El Chapo" Guzmán. "There's no HR department, no manuals—they're good with communication, so when they're killed or arrested, what harm does it really do?," added Townsend.

The report by Global Guardian also delves into the potential impact of upcoming Trump policies on American businesses operating in Mexico

"In essence, the U.S. buys the safety of American citizens with the threat of pressure—the pressure itself holds little currency with the cartels. In this maximum pressure scenario, the cost-benefit analysis for the cartels changes. Currently, violence against Americans is more trouble than its worth. But if the trouble can no longer be avoided, cartels will seek to increase its worth"

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