US military forces under Southern Command have conducted over 70 lethal strikes on suspected drug vessels in the Caribbean and eastern Pacific since late 2025, while designating additional cartels as foreign terrorist organizations and deploying hundreds of 10th Mountain Division troops to Panama, Colombia, and Honduras for joint training and exercises. The administration continues pressing Mexico for expanded intelligence sharing, joint raids on fentanyl labs, or limited US personnel involvement, building on prior support for operations such as the February 2026 killing of CJNG leader El Mencho. Mexican President Claudia Sheinbaum has repeatedly rejected direct US military action on Mexican soil, citing sovereignty, even as bilateral talks address trafficking and migration. These developments shape trader views on the timing and scope of any ground operations beyond current maritime and advisory efforts.