Tuesday, 02 January 2024 12:17 GMT

Mexico's Manufacturing Roars Back With 8.2% Export Surge To The U.S.


(MENAFN- The Rio Times) Mexico's exports to the United States rose 8.2% year-on-year in July to $45.37 billion, according to U.S. Census Bureau data.

This acceleration continued a recovery from a 2.7% drop in April and builds on gains of 5.6% in May and 6.3% in June. Manufacturers shipped more autos, auto parts, computers and medical instruments across the border this summer.

After a one-time 15.4% spike in March-driven by exporters rushing non-USMCA-compliant goods before a 25% tariff took effect-July's increase reflects sustained demand. Mexico's factories overcame tariff uncertainty to strengthen output and preserve jobs.

Meanwhile, U.S. imports from Mexico climbed 1.0% to $28.99 billion, making Mexico the top U.S. supplier for July. Canada and China saw steep export declines to the U.S., down 10.4% and 35.3% respectively.

Over January–July, Mexico's exports reached $309.75 billion, up 6.5%, nearly matching Canada's cumulative shipments despite Canadian retaliatory duties.



This trade resilience matters for North American supply chains. Mexico's auto and electronics sectors rely on integrated production networks. Strong export growth underpins manufacturing employment and tax revenues.

It also enhances Mexico's leverage in upcoming trade talks and reassures investors of its stability. Key factors to watch include the impact of reciprocal U.S. tariffs of 10–41% on selected Mexican goods, which took effect August 7.

Future data will show whether exporters can maintain momentum. Mexico is also seeking new markets in Europe and Asia to reduce U.S. reliance, which could buffer against future border disruptions.

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