Reports

Market insights: The view from Mexico

Despite rating the current climate for international business expansion positively, at 8.3 out of 10, just 40% of Mexican interpreneurs said they thought it is easy to achieve today (compared to 57% globally), while 36% thought it is difficult. Regulatory, ESG and legal compliance was the biggest challenge they faced when scaling abroad (43% said so), followed by economic volatility (41%).

What do you see as the most significant potential threats to your overseas enterprise?

Tariffs have loomed large for Mexican businesses ever since they were among the first countries to be targeted by raised US tariffs early in 2025.9 While it has managed to maintain a resilient export market with the US, and imposed significant tariffs of its own — notably on China,10 almost half (49%) view tariffrelated cost increases as a significant threat to their overseas operations looking ahead (versus a global average of 40%).

Six in 10 (61%) said tariffs or trade disputes had impacted global strategy in the past couple of years. Favourable trade agreements and tax policies were viewed as key factors that would make a target country most attractive as a destination for international expansion (55% and 45% apiece).

Accessing skills and talent is less of a driver for international expansion among Mexican interpreneurs than for those in most other countries — 17% cited this as a primary motivator, compared to 24% globally. Just a quarter (25%) said the availability of local talent and openness to skilled talent immigration would make a country particularly attractive for international expansion (versus 43% globally).

Seizing competitive advantage by gaining a foothold in new markets before rivals has risen up the priority list as a reason to expand abroad in the past two years. Half (50%) now rate this as a primary motivator (putting it second behind market growth opportunities at 51%), compared to 30% in 2024.

9. BBC News 3 February 2025 What tariffs has Trump introduced and why? https://www.bbc.co.uk/news/articles/cn93e12rypgo
10. MexicoNow News, 6 April 2026, Despite tariffs, Mexico’s exports grow https://mexico-now.com/despite-tariffs-mexicos-exports-grow/

The Mexican economy is currently experiencing low growth, which pushes entrepreneurs to look for expansion opportunities in new markets, particularly the U.S. There are also opportunities in Spanish-speaking countries in Latin America and Spain; however, their purchasing power is generally lower compared to the U.S. market.

Not properly weighing the risks of regulatory non-compliance can lead to significant consequences, such as penalties, logistical delays, and additional administrative burdens.

Medium-sized businesses can lack the internal capabilities to anticipate the regulatory framework of international expansion, as well as the market analysis required to avoid complications when expanding abroad.

Francisco Bracamonte
Tax Partner at Kreston BSG