Mexico began the second half of the year maintaining its position as the U.S.'s leading trade partner, with a 15.5% share of international trade, according to data from the U.S. Census Bureau. It was followed by Canada with a 13.9% share, and China, with 11.3%.
Notably, for the third consecutive month, both Mexico and Canada saw a decrease in their share of U.S. foreign trade, with Mexico’s share falling by 0.4 percentage points and Canada’s by 0.7 percentage points in July. In contrast, China’s share grew by one percentage point.
According to Gabriela Siller Pagaza, Director of Economic and Financial Analysis at Grupo Financiero Base, since 2016, China has lost 7.38 percentage points in its share of U.S. imports, a result of the trade war and the trend of relocation. This has benefited other countries, particularly Mexico, which has seen its labor share rise by 2.16 percentage points, followed by Vietnam with a 2.08% increase.
As a result, the trade deficit in goods and services between the U.S. and Mexico decreased by 9.16% in July compared to the previous month, standing at $13.224 billion. This came as U.S. imports from Mexico dropped by 0.71%, falling from $42.244 billion in June to $41.940 billion in July.
Despite this, Mexico accounted for 14.6% of total U.S. imports, with key products highlighted by Siller.
Meanwhile, U.S. exports to Mexico in July amounted to $28.716 billion, reflecting a 3.7% increase from the $27.685 billion reported in June.
MAAZ