MEXICO CITY, Jan 29, 2025 (BSS/AFP) - Swiss food giant Nestle will invest $1 billion in Mexico over the next three years to ramp up its operations in the country, Mexican President Claudia Sheinbaum and company executives announced Tuesday.

"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 program, 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 United States beginning February 1.

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