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In Mexico City on January 21st, President Donald Trump called for Mexican cartels to be labeled as terrorist organizations, a move that extends U.S. law enforcement's authority over these groups, but potentially complicates international business, asylum claims, and U.S.-Mexico relations, according to analysts.

This action aligns with Trump's goals regarding migration and drug trafficking, akin to other designated terrorist organizations like Al-Qaeda, Boko Haram, Hezbollah, and the Islamic State.

Analysts say this designation is not expected to significantly impact the war on drugs, but it broadens the scope for prosecuting individuals aiding cartels and facilitates targeting cartel members under U.S. law abroad.

Regarding military action in Mexico, the designation does not explicitly authorize it but could influence political perspectives on potential intervention.

The move has faced opposition from Mexico citing that cartels are profit-driven rather than politically motivated like other terror-list organizations.

President Sheinbaum emphasized the need for collaborative efforts between the U.S. and Mexico to combat cartels while respecting each country's sovereignty.

The designation may affect migrants, potentially hindering asylum claims for those coerced into paying cartel fees as supporters of a terrorist group, and could impact trade by complicating compliance and possibly threatening asset seizures for providing material support to designated organizations.

Trump's initial proposal to target Mexican cartels as terrorist groups aimed to address the fentanyl crisis plaguing U.S. communities and may also aim to leverage and pursue Mexican officials and entities involved with cartels.