Mexico: 1st trade partner of the US

Mexico continued to be the first trade partner of the United States in the period from January to October 2021, with a participation of 14.5%, reported the Department of Commerce.

Although Canada also posted a 14.5% share, its shipments were down by $ 2.9 billion.

For its part, China was placed in the third position, with a market share of 14.1 percent.

U.S. imports of goods in that period totaled $ 2.315.6 billion, a growth of 10.4% compared to pre-Covid-19 levels.

Mexico was ranked as the first commercial partner of the United States in 2019, but the following year it was displaced by China.

Top Trading Partners – October 2021

Trade in goods on a Census Basis, in billions of dollars, unrevised.

Of the total US merchandise imports, Mexico’s share was 13.7% in October 2021, after having registered 13.1% in the previous two months.

Ahead of all, China’s share was 19.1% in October, after its coverage was 17.5% in August and 19.4% in September.

Trade partner

In particular, exports of goods from Mexico totaled 34.358 million dollars last October, an annual increase of 3.8%.

In the United States, the economic recovery is moderating amid supply chain constraints and an increase in Delta variant cases. Covid-19 cases spiked at the beginning of the third quarter, prompting a drop in consumer confidence and lower spending, especially in vulnerable industries.

Furthermore, according to the European Central Bank, household disposable income fell in real terms in August, as unemployment benefits fell back to pre-Covid-19 levels.

These two factors, along with ongoing challenges along supply chains, are expected to weigh on activity in the second half of the year.

The annual headline CPI remained high at 5.4% in September, while inflation minus food and energy remained unchanged at 4.0 percent.

On a month-to-month basis, inflation increased in September after having decreased in August. Supply chain disruptions pose an upside risk for future inflation.