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What Are Mexico’s Top Exports to the United States?

What Are Mexico’s Top Exports to the United States?

President Trump’s recent threat to impose new tariffs on Mexican imports was a close call. The tax, which could have affected prices for cars, televisions, clothing, alcohol, fruits, vegetables, and the fuel that Mexico sends to the United States, was meant to take effect on June 10, starting at 5% and gradually increasing until hitting 25% in October.

Many items are made in Mexico using materials or parts first produced in the United States. Since products cross the border multiple times, the duties represented a significant risk to businesses on both sides. U.S. growth would’ve dropped and prices for those goods would’ve increased, while Mexico would likely had fallen into a full recession.

Fortunately, negotiations between the U.S. and Mexico were successful. The Mexican Government agreed to take unprecedented border actions and Trump backed off a trade war with Mexico, assuring that prices of Mexico exports to the US were not affected. Whether or not Trump’s agreement with Mexico will hold is another question. But in the meantime, businesses are relieved.

But what exactly does the flow of goods between the two countries look like to cause such great concerns?

Mexico Total Exports to U.S. $346.5 Billion
US exports to Mexico totaled $265 Billion

Mexico is now the U.S.' largest exporter to the U.S., even surpassing other trading partners such as Canada to take the top spot. Also, Mexico was the United States' 2nd largest supplier of goods imports in 2018. According to government trade data, Mexico's total imports to the U.S. are $346.5 billion in 2018, up 10.3% ($32.3 billion) from 2017. U.S. imports from Mexico accounted for 13.6% of overall U.S. imports in 2018.

$115.8 billion in autos, accessories and vehicle parts

U.S. trade with Mexico is largely all about cars, and auto parts, most of them made by American automakers and intended for the U.S. market.

The U.S. also relies heavily on Mexico for machinery, furniture, produce, and home appliances. Also, Mexico supplies the United States with one-third of it’s agricultural products. Additionally, Mexico exports to U.S. include corn and crude petroleum.

$36.6 billion in computers, TVs and video tech

The electronics manufacturing industry is a global business, with components often going from continent to continent before reaching the end consumer. Mexico is a popular location for assembly. The country is the second-largest exporter of computers to the U.S. (the largest recipient) behind China.

$5.2 billion in alcohol

Mexico is the largest exporter of beer to the United States, with more than 360 million cases of Mexican beer entering the country this year. According to the Beer Institute, most of that alcohol is made using barley and hops grown in the United States, adding that “the last thing we need is more hardship imposed on the beer industry and American beer drinkers.”

As you can see, Mexico exports a whole lot to the United States. And now, In Trump’s Trade War, Mexico is looking more like the trading partner it has always been.

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