The president has designated Mexican drug cartels as foreign terrorist organizations. Here’s what that means.

Reported by Christina Lu

(Summary version featured below. Read full report: https://foreignpolicy.com/2025/01/21/trump-drug-cartels-foreign-terrorist-organization-mexico-immigration-executive-order)

On his first day back in office, President Donald Trump signed several executive orders focusing on immigration and border security. Among them was a controversial decision to designate drug cartels as Foreign Terrorist Organizations (FTOs) and global terrorists. This move intensified Trump’s campaign against cartels, which he argued posed a significant threat to U.S. national security by destabilizing countries and enabling drug trafficking and violence. Trump’s administration had previously considered such a designation but abandoned the idea due to opposition from Mexico and concerns about its far-reaching consequences. The new designation grants the U.S. broader authority to penalize entities supporting cartels, potentially affecting various industries and individuals.

The designation’s implications extend well beyond the cartels themselves, introducing significant economic and legal risks. Businesses involved in trade with Mexico could face sanctions if they unknowingly support cartels, creating uncertainty in cross-border commerce. This includes scenarios where Mexican companies paying extortion fees to cartels export goods to the U.S., potentially implicating both suppliers and U.S. retailers. Moreover, the legal framework holds entities accountable for ensuring they do not indirectly aid cartels, amplifying the burden of due diligence across industries. Critics warn that this could disrupt trade and strain economic integration between the U.S. and Mexico.

The designation also has implications for migration and asylum policies. Migrants often pay cartels for safe passage, which could now be considered material support for terrorism, rendering them ineligible for asylum under U.S. law. While the possibility of invoking duress exists, it remains a weak defense in many cases. This policy change significantly enhances the U.S. government’s ability to deny legal status to asylum seekers. Additionally, it complicates U.S. foreign assistance efforts by requiring stringent measures to ensure that aid does not inadvertently benefit cartels, an almost insurmountable challenge given the cartels’ pervasive influence.

The designation may also open the door to increased U.S. military involvement. While it does not directly authorize military action, it facilitates intelligence gathering and targeted operations against cartels. This raises concerns about potential unilateral actions by the U.S. that could strain relations with Mexico. The move also reflects Trump’s broader strategy, which includes leveraging economic tariffs and security measures to pressure Mexico into stronger cooperation against cartels. Critics, however, question whether these measures will achieve their intended goals or simply exacerbate existing tensions.

Experts like Vanda Felbab-Brown note that while the FTO designation provides legal tools to combat cartels, its effectiveness depends on how the U.S. enforces it and whether it leads to meaningful cooperation with Mexico. Historically, Mexico’s response to cartels has been inconsistent, with limited law enforcement actions and increasing cartel dominance. Trump’s designation sends a strong signal to the Mexican government, potentially reigniting bilateral security initiatives. However, it risks further complicating U.S.-Mexico relations and disrupting trade, leaving its ultimate impact on cartel operations and regional security uncertain.