Peru has announced that it would be breaking off diplomatic relations with Mexico after the Mexican government granted asylum to former Peruvian Prime Minister Betssy Chávez. The former PM is under investigation in Peru for her alleged involvement in the 2022 coup attempt by then-President Pedro Castillo. In addition, Peru has accused Mexico of ‘repeated interference in Peru’s internal affairs. This move escalates pre-existing political friction between the two nations, which began when Mexico granted asylum to former President Castillo’s family and criticized his ousting. Consequently, the diplomatic fallout is likely to impact trade and economic flows between the countries.