Trade with Mexico is extremely important to the US. In 2024, the US imported approximately $560 billion in goods from Mexico. It is worth $15% of all imports, making Mexico the largest import trading partner in the US, and expelling Canada and China.
Key takeout
US-Mexico-Canada Agreement (USCMA)
The United States, Mexico and Canada are closely integrating their economies with the US-Mexico-Canada Agreement (USCMA), which will replace NAFTA in 2020. The USCMA has updated its old free trade agreements and added new rules on digital trade, labor protection and environmental standards.
The USCMA stipulates that 75% of the automotive components must be created in North America to qualify for tariff-free status, a rule aimed at increasing production in the region. It also requires that at least 40% to 45% of North American car production be made by workers who make at least $16 per hour. The goal is to close the gap between labor costs in the US and Mexico.
This rule provides firm stability and reduced consumer costs. It also means better wages and rights of work for Mexican workers.
Imports from Mexico
The US imports a large number of products from Mexico. The top five import categories for 2023 are:
Car: A $44.9 billion car. Parts and Accessories: $35.2 billion Delivery Truck: $26.3 billion Computer: $25.6 billion Crude Oil: $20.4 billion
Automobiles and auto parts are the most important imports. Several large US auto companies, including Ford and GM, have production plants in Mexico, manufacture cars, engines and other products, and are then sold in the state.
Other important imports include insulation wire, video displays, medical equipment, air conditioners and beer.
US exports
The US imports large quantities of imports from Mexico, but their exports are also quite large, totaling $334 billion in 2024.
The largest exports from the US to Mexico in 2023 include:
Sophisticated oil: $29.7 billion automobiles. Parts and Accessories: $17.7 billion Oil and Gas: $8.87 billion Burning Engine: $5.84 billion Corn: $5.27 billion
Fast fact
In addition to the products, the US also imported services worth $44.8 billion in 2023.
What about China?
China was once the largest import partner in the United States. However, in the late 2010s, during the tariff war launched by the first Trump administration, businesses faced many issues, including rising costs and political tensions.
Many companies began producing coastal products, bringing production closer to the US, and Mexico was a clear choice. This led Mexico to surpass China in 2023 as the largest import partner in the US. The US imported $439 billion worth of goods from China in 2024.
Conclusion
Trade between the US and Mexico has increased thanks to initiatives such as the USCMA and partial transitions from China.
Proximity, lower labor costs and favorable trade conditions have made Mexico a key player in the US supply chain. At the same time, US exports to Mexico are strong, making relations beneficial to both countries.
