Here is How A lot the U.S. Imports From Mexico

Commerce with Mexico is enormously necessary to the USA. In 2024, the U.S. imported roughly $506 billion in items from Mexico. That is roughly 15% of all imports by greenback worth, making Mexico the U.S.’s largest import buying and selling companion and ousting Canada and China.

United States-Mexico-Canada Settlement (USCMA)

The US, Mexico, and Canada have intently built-in economies because of the United States-Mexico-Canada Settlement (USCMA), which changed NAFTA in 2020. USCMA up to date the older free commerce settlement and added new guidelines for digital commerce, labor protections, and environmental requirements.

USCMA stipulates that 75% of auto elements should be made in North America to qualify for tariff-free standing, a rule supposed to extend regional manufacturing. It additionally requires that not less than 40% to 45% of auto manufacturing in North America be accomplished by employees incomes not less than $16 an hour. The purpose is to shut the hole between labor prices within the U.S. and Mexico.

This rule offers stability for companies and decrease prices for shoppers. It additionally means higher wages and labor rights for Mexican employees.

Imports From Mexico

The US imports numerous items from Mexico. The highest 5 import classes in 2023 have been:

• Vehicles: $44.9 billion
• Motor autos; components and equipment: $35.2 billion
• Supply vans: $26.3 billion
• Computer systems: $25.6 billion
• Crude petroleum: $20.4 billion

Cars and auto components are essentially the most vital imports. A number of giant U.S. auto firms, together with Ford and GM, have manufacturing vegetation in Mexico, making automobiles, engines, and different merchandise which might be then returned stateside on the market.

Different necessary imports embrace insulated wire, video shows, medical tools, air conditioners, and beer.

U.S. Exports

Whereas the U.S. imports a big quantity from Mexico, its exports are additionally sizeable, totalling $334 billion in 2024.

The most important exports from the USA to Mexico in 2023 included:

• Refined petroleum: $29.7 billion
• Motor autos; components and equipment: $17.7 billion
• Petroleum gasoline: $8.87 billion
• Combustion engines: $5.84 billion
• Corn: $5.27 billion

What About China?

China was once the USA’ largest import companion. Nevertheless, within the late 2010s, in the course of the tariff wars initiated by the primary Trump administration, companies confronted many points, comparable to rising prices and political pressure.

Many firms began to nearshore manufacturing, shifting manufacturing nearer to the USA, and Mexico was a transparent selection. This resulted in Mexico surpassing China because the U.S.’s largest import companion in 2023. The U.S. imported $439 billion price of products from China in 2024.

The Backside Line

Commerce between the U.S. and Mexico has elevated, due to initiatives like USCMA and a partial shift away from China.

The proximity, decrease labor prices, and favorable commerce phrases have made Mexico an necessary participant within the U.S. provide chain. On the similar time, U.S. exports to Mexico are robust, making the connection helpful to each international locations.