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Writer's pictureBy The Financial District

Unilever, Procter & Gamble Face Risks From Potential Mexico Tariffs

Procter & Gamble (P&G) and Unilever could face significant exposure if U.S. President-elect Donald Trump enacts tariffs on Mexico, according to data reviewed by Reuters.


Unilever, P&G, and other major consumer goods companies like PepsiCo have collectively poured heavy resources into their Mexican supply chains. I Photo: Unilever



Trump recently threatened to impose a 25% tariff on Mexico and China unless both countries take action to curb fentanyl trafficking into the U.S., reported Richa Naidu. Publicly, consumer goods companies like P&G and Unilever have highlighted investments in Mexico to create supply hubs for the U.S. market.


However, new data from ImportYeti, shared exclusively with Reuters, reveals the extent of these supply chains’ exposure to U.S. tariffs.



P&G’s third-quarter shipments from Mexico represented about 10% of total imports, while approximately 2% of Unilever’s U.S. sea imports came from Mexico.


P&G, Unilever, and other major consumer goods companies, including PepsiCo, have collectively invested heavily in their Mexican supply chains, which could be significantly impacted by a shift toward U.S. protectionism.




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