MEXICO CITY, Jan 29, (V7N) — Swiss food giant Nestlé has announced a $1 billion investment in Mexico over the next three years to expand its operations in the country, President Claudia Sheinbaum revealed Tuesday alongside company executives.

"They are going to make a billion-dollar investment over the next three years to increase the production of various products in our country," Sheinbaum said in a video posted on social media.

The investment aligns with Mexico’s "Plan Mexico" initiative, which aims to replace Chinese imports with domestic production, strengthening both the Mexican and North American markets.

"This is a great opportunity to reinforce confidence in Mexico, its government, and the major opportunities Mexico offers to the whole world," said Fausto Costa, general manager of Nestlé Mexico.

Nestlé’s announcement comes just days before a key deadline set by U.S. President Donald Trump, who has threatened to impose 25% tariffs on Mexican imports starting February 1.

The United States remains Mexico’s largest trading partner, receiving 83% of its total exports in 2023, valued at over $490 billion. The new tariffs could have major implications for companies like Nestlé, which rely on cross-border trade.

As Mexico navigates shifting trade policies, Nestlé's investment signals a strong commitment to expanding its presence in the region despite economic uncertainties.

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