US-Mexico Cross-Border Freight Rises
Cross-border freight flows between the U.S. and Mexico remain robust, with December exports increasing 17.2% year-over-year. The growth is now primarily driven by non-automotive exports. This trend could affect supply chains for beauty and self-care categories with vendors in Mexico or Latin America.
- In 2025, Mexico's non-automotive manufacturing exports to the U.S. saw a significant increase of about 17%. This growth was largely driven by categories such as computers, electronics, and specialized industrial machinery. - The United States is Mexico's largest trading partner in the cosmetics and personal care sector. Mexico, one of the top 10 global markets for these products, exported $2.2 billion worth of beauty products, with 55% of that going to the U.S. - Key beauty and personal care products exported from Mexico to the U.S. include deodorants, shaving products, hair care, makeup, skin care, and oral hygiene products. This trade is facilitated by the fact that most cosmetics fall under the HS code 3304 and are often duty-free. - The trend of near-shoring has prompted U.S. beauty brands to increasingly consider Mexico for manufacturing, attracted by its proximity and cost-effective shipping, despite production technologies being slightly behind China. - Major multinational corporations like Unilever are making substantial investments in Mexico's manufacturing capabilities, including a new facility in Nuevo Leon, signaling long-term confidence in the region's potential for the beauty and personal care supply chain. - The United States-Mexico-Canada Agreement (USMCA) plays a crucial role in this trade relationship, offering a 49% cost exemption for goods made in Mexico, which benefits brands that source packaging or ingredients from the country. - Potential changes to trade agreements and tariffs could disrupt the integrated supply chains for the North American cosmetics and personal care market, which saw trade valued at $10.1 billion among the three countries in 2024. - The overall value of goods imported from Mexico to the U.S. in 2024 was over $500 billion, with manufacturing accounting for nearly 90% of Mexico's total exports.
