“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 to social media, where she appeared alongside Nestle representatives.

Sheinbaum said the investment is part of the “Plan Mexico” government programme, which aims to supplant Chinese imports in the country with domestic production to strengthen 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,” Fausto Costa, general manager of Nestle Mexcio said in the video.

The announcement comes days before a deadline set by US President Donald Trump, who has threatened to impose 25% tariffs on Mexican imports to the US beginning Feb 1.

Mexico’s northern neighbour is by far its top trade partner, receiving 83% of its total export volume in 2023, worth over US$490 billion dollars.