According to reports, there were no injuries in the incident near Fronton Island, an uninhabited island in Starr County, Texas.

His administration would have more power to impose economic penalties and travel restrictions, and potentially even take military action inside foreign countries.

The full implications of designating the cartels as terrorist organizations will depend, in large part, to how the administration follows through.

Mexican President Claudia Sheinbaum on Friday said that U.S. President Donald Trump's decree earlier this week that drug cartels based in the country are terrorist groups "won't help," adding her government is nonetheless preparing for its legal impacts.

Donald Trump returned to the US presidency on January 20 with a flurry of executive orders. This included the designation of criminal gangs and drug cartels operating south of the Mexico border as “foreign terrorist organisations” – a first for a US president. The state department will now decide which groups are added to the list.

Current and former federal senior law enforcement officials have warned of a possible “violent pushback” from Mexican cartels infuriated by President Donald Trump’s immigration crackdown for how it will curb their human smuggling incomes.

President Donald Trump has designated Mexican drug cartels as foreign terrorist organizations, which could set the stage for sending American special operations forces into Mexico to kill local drug kingpins.