Redwood MX Update: April 2025

This Month: Despite Tariffs, Mexico Remains America’s #1 Trade Partner 

Welcome to the April edition of Redwood’s Mexico Market Update! This monthly report identifies key economic and business trends in Mexico, transportation news and challenges, and new investors in Mexican markets over the preceding weeks. Redwood’s team of cross-border specialists created this report to keep you informed. 

In early April, as in the first quarter of 2025, trucking companies along the U.S.-Mexico border faced increased freight uncertainty due to tariff threats from U.S. President Donald Trump, who has made import tariffs a central part of his trade policy. This led to uneven freight demand, amid recent heavy investments fueled by the nearshoring boom. On April 9, Trump paused the new tariffs he imposed just two days earlier, except for maintaining a 125% tariff on goods imported from China. 

Despite the ongoing tariff dance, Mexico remains the top U.S. trade partner, and Port Laredo, Texas, is the number-three trade gateway in America. Total Mexico-U.S. trade reached $68.4 billion in February, representing a 2% year-over-year increase, according to data from the U.S. Census Bureau. That same month, the Port Laredo border crossing saw $27.8 billion in commerce, a 1% increase compared to the previous year. Canada was the second-largest U.S. trade partner with $63.2 billion in February, while China ranked third with $42.1 billion, reflecting a 4% decrease. 

Fuel prices remain fairly consistent in Mexico despite the turmoil, at 98.22 MXN/gallon. The value of the Mexican peso continues to fluctuate. The highest USD/MXN exchange rate in 2025 was 20.846 Mexican pesos per U.S. dollar on April 8, while the lowest exchange rate was 19.505 Mexican pesos per U.S. dollar on April 25. 

Security remains a concern for cross-border shippers. In March 2025, GPS-tracked vehicle thefts increased by 11% compared to the 2024 monthly average, with crime rates continuing to rise. The highest number of incidents occurred on Fridays and Tuesdays, accounting for 23% and 22% of all crimes, respectively. Most thefts took place at night, particularly between 7 p.m. and midnight. The states most affected were the State of Mexico, Puebla, and Guanajuato. Heavy trucks were the primary targets. General goods, along with food and beverage products, were the most commonly stolen items. 

Transportation News and Challenges 

Trump signs executive order restricting Mexican drivers with B1 visas 

U.S. President Donald Trump has signed an executive order that strengthens English proficiency requirements for commercial drivers, potentially limiting employment opportunities for Mexican drivers with B1 visas. The measure reverses an Obama-era policy and aims to more strictly enforce language regulations on U.S. highways. Although the order has not yet been fully implemented, the U.S. Department of Transportation has 60 days to define additional actions.  

DOT advances $150 million grant for San Diego port of entry 

The U.S. Department of Transportation recently announced it will proceed with a $150 million grant to build a road and port of entry facility in the San Diego-Baja California border region. On April 15, U.S. Transportation Secretary Sean Duffy explained the grant agreement is meant to improve freight connectivity and security along the international border with Mexico, as well as continue the rollback of Biden-era environmental regulations.  

Investment Trends 

In April, foreign investment in Mexico remained strong. Following are some recent infrastructure investments that demonstrate Mexico’s continuing appeal to foreign manufacturers and retailers. 

American retail giant Walmart will invest $6 billion USD in Mexico to open new-generation distribution centers and increase the number of stores. Swedish automaker Volvo will spend $1 billion on a new plant in Nuevo Leon. Unilever, a UK-based manufacturer, is investing $800 million in a new plant, also in Nuevo Leon. Danish manufacturer Lego is expanding its Nuevo Leon facility at a cost $580 million. Seojin Mobility, a South Korean automotive manufacturer, will invest $160 million in a new plant in Nuevo Leon. 

Whether your own plans include building a facility, investing in cross-border logistics or otherwise capitalizing on robust U.S.-Mexico trade, Redwood is the right partner to support you. Learn more about our cross-border and international capabilities, or let’s talk one-on-one about your specific goals, challenges, and opportunities.