BRAZIL: Speeding Footwear’s Sustainability
Brazil is accelerating its sustainable footwear efforts through the Sustainable Origin campaign, run by Abicalçados and Assintecal. The certification covers 104 ESG indicators, pushing transparency across leather, components and production. Notably, 83% of Brazilian footwear companies now use 100% renewable electricity, up from 47% in 2021. Plus, 71% of them audit their suppliers for social, legal and environmental compliance.
Mexico is the Largest Buyer of US Goods for the First Time
Mexico has surpassed Canada to become the United States’ largest buyer of goods for the first time. In the first eight months of 2025, Mexico imported US goods worth $226.4 billion, accounting for 15.8% of all US export revenue. This shift reflects both Mexico’s steady demand (including vehicles and agricultural products) and a decline in Canadian purchases partly driven by US tariffs. Meanwhile, Mexico remained the top exporter to the US, , reinforcing deep economic integration under USMCA. Two-way trade between the countries reached $581.3 billion, far surpassing US trade with Canada or China, and highlighting a highly complementary “co-production” system in which both nations supply essential inputs for major industries including automotive.
Trade Headwinds: Mexico’s New Momentum in Nearshoring?
Mexico’s leather and hide sector ends 2025 facing pressure but it also has some momentum. US tariff shifts, tighter customs checks and livestock disruptions including screw worm have reduced hide availability and created pricing volatility for tanneries. Yet nearshoring is lifting demand as automotive and footwear manufacturers expand, encouraging tanneries to upgrade and move into higher-value products. Sustainability requirements from the EU and US are prompting new investments in cleaner processes and traceability alongside efforts to reinforce leather’s role as a cattle byproduct. Despite trade tensions, Mexico’s strengthened place in North American supply chains is opening room for modernization. It doesn’t hurt that some US packers prefer shipping by truck rather than container.
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