The U.S. Supreme Court has reaffirmed the American gun industry’s legal shield, unanimously striking down a lawsuit brought by Mexico. The Mexican government had accused Smith & Wesson and Interstate Arms of contributing to the illegal trafficking of firearms to drug cartels, a claim that the highest court ultimately dismissed.

The lawsuit, initiated in 2021, alleged that the gun companies deliberately maintained a distribution system that allowed weapons to be funneled to “straw purchasers,” who then supplied them to criminal organizations south of the border. The suit also challenged the companies’ marketing of “military-grade” weapons, arguing it fueled demand among cartels.

While a lower court had allowed the case to proceed, citing plausible allegations, the Supreme Court disagreed. Justice Elena Kagan’s opinion for the unanimous court clarified that Mexico’s complaint did not sufficiently “plausibly plead” that the companies had aided and abetted unlawful sales.

The ruling carries substantial implications for U.S.-Mexico relations, particularly amidst ongoing tensions regarding border security, drug enforcement, and trade. Mexico has repeatedly highlighted the severe consequences of gun violence, largely fueled by firearms trafficked from the United States, on its economic development and social stability.