Mexico is Now Biggest Trading Partner of USA, Ahead of Canada & China

19 August 2019
US Mexico Import Export

Which country is now the biggest trading partner of USA? China? No! It’s not China. It is Mexico, which get most of the benefits from the trade war between USA and China, which started early 2018. If we see shipment records of first six months of 2019, Mexico has become the largest trade partner of the US both in terms of imports and exports. According to the US Census, Mexico’s trade value with the US recorded US$ 308 billion, followed by Canada of US$ 306 billion and China of US$ 271 billion. Let’s have a bigger and clear picture of trade between USA and Mexico with special focus on trade war between China and USA.


Top Trading Partners of the United States in the First Six Months of 2019


In global trade, the happiest country today is Mexico. Why? It is because Mexico has become the top trading partner of the United States of America, dispute in trade between China and USA.


Last year, China was the largest trading country of the United States in 2018, but in first six months of 2019, Mexico and Canada left China behind and stood at 1st and 2nd position respectively. And it is expected that Mexico will hold this rank in near future due to the trade war and new trade agreement between US and Mexico, called NAFTA. The North American Free Trade Agreement (NAFTA), which was signed in 1994 to lower tariffs between the US, Mexico and Canada, played a great role in increasing trade between the US and Mexico. The trade agreement between US, Canada and Mexico will also help Canada to be among US largest trading partners. Here is quick look at US major trading partners with their collective import & export value recorded in the first six months of 2019.



Country

Value (Imports + Exports)

Mexico

US$ 308 billion

Canada

US$ 306 billion

China

US$ 271 billion

Japan

US$ 109 billion

Germany

US$ 92 billion

 


Top Trading Partners of the United States in the First Six Months of 2018


China was the largest trading partner in 2018. Since beginning of the US-China trade war last year, both US exports to China and Chinese exports to the US have declined significantly. According to Export Genius, world’s leading import-export data provider, China traded US$ 317 billion worth of goods with the United States, followed by Canada and Mexico. Look at the chart and table to know list of the largest trading partners of USA top with trade statistics recorded in the first six months of 2018.  


                                                  


Country

Value (Imports + Exports)

China

US$ 317 billion

Canada

US$ 309 billion

Mexico

US$ 296 billion

Japan

US$ 102 billion

Germany

US$ 87 billion

 


Mexico’s Main Imports from the US in 2018


As per Mexico import data, Mexico’s top import product from the United States in 2018 was mineral fuels and oils, followed by machinery, mechanical appliances, etc. Mexico purchased mineral fuels and oils worth US$ 41 billion from the US in last year. Go through the chart and table below to know and analyse Mexico’s top 10 imports from the US in 2018.



Product

Value US$ Billion

Mineral Fuels and Oils

41

Machinery, Mechanical Appliances, etc.

28

Electrical Machinery and Equipment

22

Vehicles

20

Plastics

16

Optical, Photographic, Medical, Equipment, etc.

05

Organic Chemicals

05

Articles of Iron and Steel

04

Iron and Steel

04

Cereals

03

 


Mexico’s Main Exports to the US in 2018


According to Mexico export data, vehicles stood as the largest export commodity of Mexico to the US in 2018. The country supplied vehicles worth US$ 92 billion to the US last year. Here is a look at Mexico’s top 10 exports to the US in 2018.



Product

Value US$ Billion

Vehicles

92

Electrical Machinery and Equipment

70

Machinery, Mechanical Appliances, etc.

65

Optical, Photographic, Medical, Equipment, etc.

17

Furniture, Bedding, Mattresses, etc.

09

Plastics

07

Edible Vegetables and Certain Roots

06

Articles of Iron and Steel

05

Beverages, Spirits and Vinegar

05

Edible Fruit and Nut

05

 


Look at the two samples and understand which columns are covered in Mexico trade data and US trade data!


Sample 1 – Mexico Export Sample with US as Country of Destination


Date

10-01-2019

Exporter ID

LMC0502079Q9

Exporter Name

Mexican Logistics Of The Caribbean S DE RL DE CV

Exporter Address

Romero De Terreros Narvarte Uxmal And Yacatecas

Exporter City

Benito Juarez

Exporter State

Federal District

Buyer Name

Tidewater Marine LLC

Buyer Address

Canvasback DR

Buyer City

ST.Rose Lousiana

Destination Country

United States of America

HS Code

85023901

Product Description

Electric Turbogenerator Brand Leroy Somer, Type Lsam 50.2vl10, Series: Cknm19346, Including Instruction, 2 Pcs Jgs Of Self-Adhesive Labels

Commercial Quantity

1

Commercial Unit

Piece

Gross Weight

3350

FOB Value (USD)

38392.38

Customs/State/Port

Two Bocas, Paradise, Tobasco

Transport Type

By Sea

Item No.

0178

Chapter

85

HS 4 Digit

8502

 


Sample 2 – US Import Sample with Mexico as a Country of Origin


Estimate Arrival Date

30-05-2019

Actual Arrival Date

31-05-2019

Bill of Lading

BANQBJX0106706

Master Bill of Lading

LPUSALTTAM03231

Bill Type Code

H

Carrier SASC Code

BANQ, KUEHNE & NAGEL INC.

Vessel Country Code

PT

Vessel Code

EMILIA

Vessel Name

EMILIA

Voyage

0057N

Manifest Number

1

Loading Port

20193, Tampico

Unloading Port

1801, Tampa, FL

Country

MX, Mexico

Weight (KG)

3692

Quantity (PCS)

26

Container ID

CAIU8099484

Container Size

4000*900*800

Container Type

45G0

Consignee Name

Samsung Electronics America

Consignee Address

On Behalf of Lowes ADC 3374110 MOSS Road East 33823 Auburndale FL 33823 US

Shipper Name

Samsung Electronics Digital Appliances Mexico SA DE CV

Shipper Address

Avenida Benito Juarez 119 Queretaro MX Industrial Park

HS Code

841810

Product Description

Refrigerators PO 5271041680 PO Customer 109245780

Notify Party Name

Samsung SDS Global SCL America INC

Notify Party Address

2505 N Plano Road Suite 2000 Richardson TX 75082 US

 


Impact of US-China Trade War


The fact is that Mexico may never have become the US’s largest trading partner if Donald Trump did not take aggressive stance towards China. From 2015 to 2018, more than 20% of all US imports came from China. In 2002, that number was under 10%. The trade between the two countries rose when China entered the World Trade Organization in 2001 allowing it to export commodities to the US more cheaply.


Due to increasing tariffs by the Trump administration, the value of goods imported from China to USA declined from US$ 250 billion in the first six months of 2018 to just US$ 219 billion in same period of 2019. According to Mexico Importer data, the products which saw a sharp decline in the value were semiconductors, video games consoles and aluminium.


China’s tariffs on US goods also had effected US exports to China, which fell from US$ 64 billion in the first six months of 2018 to just US$ 51 billion in the same period for 2019. Products which registered a decline were soya beans and petroleum oil.


With the US set to raise tariffs by 10% on US$300 billion worth of Chinese imports in September and Chinese retaliation expected, it is unlikely that China will return to the top spot in the near future. With this there will be ample trade opportunities for other countries to fill that gap. Vietnam, South Korea and Taiwan have also registered an increase in their shares of trade with the United States.


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