Redwood MX Update: July 2026

1. Key Affecting Factors 

Mexican Fuel: $27.075 MXN/Liter
U.S. Fuel: $5.134 USD/Gallon
Foreign Exchange: $17.4315 USD/MXN

North America continues to face significant geopolitical and economic developments that could reshape regional trade and supply chains. The United States has proposed replacing the automatic 16-year extension of the USMCA (T-MEC) with annual reviews while keeping the agreement in force through 2036. This approach could lead to new negotiations on key issues such as rules of origin, the automotive industry, steel, aluminum, and economic security, making the outcome of each review critical for Mexico's competitiveness and regional trade. 

Escalating tensions in the Middle East—particularly the conflict between the United States and Iran—have driven Mexico's crude oil price to a one-month high of USD 73 per barrel. The surge in oil prices has also increased WTI and Brent benchmarks, adding pressure to financial markets through stock market declines, a weaker Mexican peso, and rising concerns over global inflation, further contributing to uncertainty across international supply chains.

2. Transportation News & Challenges 

Mexico's transportation and logistics industry continues to face major challenges, including rising operating costs, security concerns, a shortage of qualified drivers, and the need to adopt emerging technologies such as artificial intelligence (AI). While digitalization enhances operational efficiency and decision-making, companies agree that long-term success will depend on combining technological innovation with efficient processes and a skilled workforce. They also emphasize the importance of investing in talent development, strengthening security measures, and optimizing operations to maintain competitiveness and profitability.

Risk management has become increasingly important for trucking companies seeking to protect their operations from cargo theft, accidents, delays, and supply chain disruptions. Industry experts emphasize that prevention, data analysis, and strategic logistics planning help identify risks early and improve operational resilience. Cargo theft remains a major challenge in Mexico, particularly in the Central and Bajío regions, where most incidents involve violence and affect industries such as food, automotive, and fuel. Beyond financial losses, these events can damage customer relationships and business reputation. Companies are strengthening their operations through telematics, GPS monitoring, preventive maintenance, driver training, supplier evaluations, and tailored insurance coverage. A proactive risk management strategy, supported by leadership commitment, is essential to improving supply chain reliability and long-term business performance.

Trade between Mexico and the United States reached record levels in 2026, driving a significant increase in cross-border freight movement and transportation demand. The Port of Laredo recorded the highest trade volume in its history, reflecting the sustained growth of exports and imports over the past decade. This strong trade activity creates new opportunities for the logistics sector while also placing greater pressure on border infrastructure, highlighting the need to expand operational capacity and improve the efficiency of key trade corridors. 

Mexico's logistics industry is facing new challenges, with sustainability, cost control, and talent management becoming key factors for maintaining competitiveness. The Fourth National Logistics Indicators Study highlights that more companies are measuring their environmental impact while transportation costs continue to rise, and the industry experiences high turnover of specialized personnel. To remain competitive and profitable, organizations must combine operational efficiency, innovation, and workforce development strategies to strengthen their supply chains.

3. Foreign Direct Investment - Mexico

Inventec will invest $450M USD in Ciudad Juárez to expand its manufacturing platform, adding 45 new production lines and creating more than 6,000 jobs. The company manufactures high-performance servers for artificial intelligence and other advanced technology applications. (Manufacturing – Taiwan)  

Döhler opened a new production plant in the State of Mexico following an investment of more than 68.9 billion pesos, boosting Mexico's manufacturing capacity in a sector that is strategic for the economy and exports. (Food and Beverage – Germany)

Daikin and TCL are leading investment projects in Baja California. Daikin will invest $123 million USD and create 4,400 jobs in Tijuana. Meanwhile, TCL will invest $50 million to manufacture computer, communications, and measurement equipment, a project that will create 3,000 jobs. (Manufacturing – Japan; Electronic components - China)

BorgWarner will expand its operations in San Luis Potosí with an investment of $49M USD between 2025 and 2028. The project will increase the production of electronic components and electric vehicle (EV) solutions while generating 663 specialized jobs between 2026 and 2030. (Automotive – United States)