Mexico stepping up as a top U.S. trading partner

Despite tensions stemming from the fentanyl epidemic and an ongoing immigration crisis that could gain momentum ahead of the U.S. presidential election, Mexico and the U.S. found themselves forging even closer ties last year. 

The economic interconnection between the two nations continued to deepen in 2023, with trade between both countries reaching a remarkable milestone. 

Last year, Mexico briefly became the largest trading partner of the U.S., relegating China to the sidelines and vying with Canada for top spot, further cementing its pivotal role as a supplier of manufactured goods to the U.S. economy. 

In the first 11 months of 2023, the total goods trade between Mexico and the U.S. reached an impressive USD 718 billion, representing nearly 15 percent of all goods imported and exported by the country. This figure is now similar to Canada’s, another major supplier to the U.S., and significantly outpaces China’s USD 640 billion (13 percent), amid strained relations between the U.S. and the Asian giant.

After surpassing Canada as the top U.S. trading partner in 2014, China encountered a changing landscape in 2018. The Trump administration imposed tariffs on Chinese imports, which triggered retaliatory measures from China on U.S. imports, resulting in an overall decline in bilateral trade.

Against this backdrop, Mexico is strategically positioned to seize the unfolding opportunity, fueled...