US Government Shutdown Worsens, Alarming Mexican Businesses


The budget stalemate in the United States government entered its seventh day on Oct. 7 with no resolution in sight, creating uncertainty for Mexican companies.

Both Democrats and Republicans have signaled their willingness to prolong the standoff as President Donald Trump announced the first wave of federal employee layoffs. Since the shutdown began on Oct. 1, both parties have refused to compromise, blaming each other for the deadlock.

Blanca Algarra Alba, Professor, International Studies at Tecnológico de Monterrey, explains that individuals awaiting legal resolutions or benefits from federally funded programs will face delays in receiving documents or resources. She emphasized that the shutdown is a domestic political issue within the United States and that President Trump is likely to classify many programs and services as “non-essential,” paving the way for their suspension.

“Trump is saying, ‘The Democrats shut down the government,’ but the truth is that neither side is willing to give up on what they consider essential to their political identity,” Algarra said. “It is a power struggle over which public policies will survive.”

Last week, the Embassy in Mexico confirmed that its operations would continue as planned, though it warned that updates on its X account would stop, and anyone seeking information should visit its official website.

Martín Pustilnick, Co-Founder and CEO, MUNDI, noted that the government shutdown could ripple through financial markets and slow customs operations between the United States and Mexico, delaying shipments, payments, and inventory management. “It is serious because it slows down inventory rotation and payments. If I worked with perishables, I would be very concerned,” Pustilnick said.

Algarra pointed out that the Mexican government has little room to act since the affected services are provided by the US administration. As of Oct. 6, six votes had been held to reopen the government. A total of 60 votes are required, meaning Republicans need the support of at least seven Democratic senators to pass the funding bill.





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