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U.S.-Mexico Trade Surges, Mexico Becomes Top Partner

1/8/2026

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Story summary
  • The United States and Mexico intensified their trade relationship, making Mexico the United States' largest trading partner.
  • During U.S. President Donald Trump's tenure, the trade deficit with Mexico rose from $63 billion to $171 billion.
  • Mexico uses more U.S. components in its exports than China, altering deficits when value-added is counted.
  • Accounting for value-added, the automotive deficit falls from $108 billion to $19.8 billion, signaling co-production and deeper integration.