The title is a pun on the famous Mexican song, "Mexican Hat Dance".
The mice of a Mexican town decide to take over a local bullring after Toro the Bull scares the matador out of the arena. Speedy Gonzales will be the matador to Sylvester's bull at their bullfighting tourney. When the mice arrive at the bullfight arena, Speedy shows up in his matador outfit. As the battle begins, Sylvester completely misses Speedy and slides into the wall. Sylvester chases after Speedy who then nails Sylvester with a pin, which makes the Mexican Mice laugh. Sylvester scares the mice off, but Speedy asks if he is chicken. The two of them run in circles until Sylvester crashes into an anvil. Sylvester then gets back up and can't find Speedy anywhere. Speedy scares Sylvester who hits his head on the anvil again. The mice cheer for Speedy, but then Sylvester scares Speedy who scares him back. Sylvester chases Speedy across the arena only to crash into the wooden door. While the mice cheer Speedy, Sylvester lights a stick of dynamite. He then hurls it towards Speedy who throws it back to Sylvester. Sylvester throws it back to Speedy who then puts glue on it and gives it back to the cat. Thinking quickly, Sylvester hides the stick in the ground and then covers his ears as the dynamite explodes. Sylvester falls to the ground with the exploded dynamite still in his hand. Finally, Sylvester tries to catch Speedy with Rocket Powered Skates. Sylvester turns on the power and as Speedy goes by, he tries to nab the mouse but the skates are so powerful that he exits the arena. Speedy's final words are, "I like that pussycat! He's stubborn like a bull!"
The opening scene with Toro is reused animation from "Bully for Bugs".