While the world waits with bated breath to see whether President Trump will follow through on his proposed “reciprocal” tariffs, British consumer goods company Unilever is making moves in Mexico in an effort to strengthen its North American supply chain.
Last week, the multinational conglomerate announced that it would invest $30 billion pesos ($1.5 billion) in Mexico between 2025 and 2028 to increase its production capacity, including 8 billion pesos ($407.4 million) for a new factory in the northern Mexican state of Nuevo León, which will specialize in beauty and personal care products.
“This investment will create 1,200 new direct and indirect jobs in Mexico,” Unilever’s Chief Supply Chain and Operations Officer Willem Uijen said at Mexican President Claudia Sheinbaum’s daily morning press conference on Friday, May 2.
In March, President Trump implemented a 25% tariff on goods failing to meet the United States-Mexico-Canada Agreement (USMCA) rules of origin. To qualify for USMCA, goods must be manufactured in the US, Mexico, or Canada, or be made with non-North American materials that undergo significant transformation within a USMCA member country. Goods from Canada and Mexico that comply with USMCA rules are exempt from these tariffs.
Facing potential tariff increases after the 90-day pause of President Trump's proposed tariffs expires on July 9, Mexico is attempting to attract foreign businesses in hopes of gaining an advantage in the trade war.
Unilever is among several multinational corporations that have recently announced investments in Mexico. In March, Walmart announced a $6 billion investment, which is expected to create thousands of jobs. Amazon, Netflix, and Santander, Spain's largest bank, have also announced significant investments in the country this year.
“It’s important to recognize that these investment announcements are being made in an uncertain economic environment,” said Mexico’s Economy Minister Marcelo Ebrard at the press conference. “So beyond the [monetary] value, the fact that companies are investing in Mexico means they see a positive and promising future for Mexico.”
Unilever set aside 8 billion pesos ($407 million) in 2023 to start building the Nuevo León factory, which will produce beauty products and personal care items by its brand leaders Dove, Rexona, and Sedal, according to Uijen. The company has been operating in the country for over 60 years and currently employs more than 7,000 people there.
Unilever's recent announcement aligns with Sheinbaum's Plan México, which aims to attract greater domestic and international investment into the country.
“We fully support the principles of Plan México,” said Uijen before adding that Unilever supports the Mexican government’s project “to promote public welfare, encourage sustainable development, and actively contribute to a more prosperous future for everyone.”
