Latino is the term that is used to describe people who are living in the USA whose primary language is Spanish. There are also instances when Latino is a term that can be used to describe people who come from other Spanish-influenced countries.
There are also some of them who may be of Spanish descent. Mexican is the term that is used in order to refer to people who are living in Mexico. Take note that what makes people confused with Latino and Mexican is the fact that Latinos and Mexicans use Spanish as their main language. Take note that Mexico will have its own distinct food and culture from Latinos.