(MENAFN- The Rio Times) For the first time, Mexico has displaced Canada as the main destination for U.S. goods. From January to August 2025, American companies exported about 226.4 billion dollars in products to Mexico, slightly more than the 225.6 billion shipped to Canada over the same period.

Sales to Mexico in that window inched up, while exports to Canada fell. China, once the dominant commercial rival, slipped to third place with around 219.0 billion dollars in U.S. imports.

This shift crowns a broader trend. Mexico has already been the United States' leading goods supplier for two years in a row and is on track to repeat that position in 2025.

The U.S. now buys more manufactured goods from Mexico than from China, and it also sells more into the Mexican market than into Canada or any single European country.

In practical terms, the most important trade relationship for U.S. factories is no longer across the Pacific but across the Rio Grande.



Tariffs have not stopped this. Washington currently charges a 25 percent duty on Mexican products and 35 percent on Canadian goods that do not comply with the USMCA trade deal's content and origin rules.

Most trade still moves under the agreement at zero tariff, but for the slice of commerce that falls outside those rules, the extra cost weighs more heavily on Canada than on Mexico.

Producers that adapt to strict regional-content rules and keep supply chains in North America are rewarded; those that do not pay for it.
North America rewires its supply chains
On the import side, the U.S. bought 354.9 billion dollars in goods from Mexico in the first eight months of 2025, a rise of just over six percent compared with a year earlier.

Purchases from Canada dropped to about 259.8 billion dollars, while imports from China tumbled to roughly 219.0 billion.

Overall U.S. merchandise imports climbed to 2.32 trillion dollars in that period, leaving the country with its largest goods trade deficit vis-à-vis China (145.4 billion), followed by Mexico (128.5 billion) and Vietnam (113.0 billion.

These numbers rest on decades of deep integration. In autos and electronics, factories on both sides of the border now act like one giant workshop.

A car assembled in the United States can contain thousands of components that cross back and forth between Mexican and U.S. plants before reaching the showroom.

Private investment has followed this logic: companies worried about political risk and rising costs in China are shifting production closer to home, where legal frameworks are clearer and property rights are comparatively stronger.

For Mexico, becoming both a top supplier and the top buyer of U.S. goods brings new leverage but also greater responsibility to keep rules stable, protect investment and maintain security along trade corridors.

For Canada, the figures are a warning that higher costs and regulatory choices can slowly erode a privileged position. For China, they confirm that North America is quietly rewiring its trade away from a single Asian hub toward a more politically aligned neighborhood.

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