Relationships with the U.S. are key for Mexico

Article Excerpt

Mexico’s ties with the U.S. are very important for the country—and here are two critical aspects of that relationship. First, Mexico exports over $500 billion worth of goods every year to the U.S. That is more than 80% of the country’s total exports and the equivalent of 28% of its gross domestic product (GDP). Vehicles, electrical goods, computers, machinery, and food make up the bulk of the value of these exports. Notably, the Mexican manufacturing sector, which accounts for more than 80% of total exports, is particularly exposed to changes to U.S. trade policies. While U.S. trade policies are in a state of flux, it is noticeable that Mexico has so far been spared the worst of the tariffs imposed on many other countries. New tariffs recently imposed by the U.S. on Mexican imports amount to 25% on steel and aluminum and all goods that are not covered under the USMCA trade agreement. A second important relationship with the U.S. is the considerable…