How Much Does the U.S. Import From Mexico?

Mexico is one of the United States’ largest trading partners, with nearly $1.7 billion worth of goods and services crossing the US-Mexico border every day. Although President Trump canceled his administration’s plan to impose tariffs on Mexican imports just nine days after it was announced in late May 2019, the threat of the tax has shed light on the trade relationship between the two countries and the amount of goods that arrive daily in the United States from Mexico.

A tax levied on US imports from Mexico would have impacted the price of everything from cucumbers to cars, televisions, refrigerators and alcohol.

Key points to remember

  • Mexico was the second largest supplier of goods imported from the United States in 2018; trade with Mexico totaled approximately $671.1 billion in 2018 and imports accounted for $371.9 billion of that amount.
  • The main categories of goods imported from Mexico are vehicles, electrical machinery, machinery, agricultural products, mineral fuels, and optical and medical equipment.
  • Although President Trump canceled his administration’s plan to impose tariffs on Mexican imports just nine days after it was announced in late May 2019, the threat of the tax has shed light on the trade relationship between the two countries.

According to the Office of the United States Trade Representative, trade with Mexico totaled approximately $671.1 billion in 2018, more than our total trade with Canada. Imports accounted for $371.9 billion of this amount. Mexico was the second largest supplier of goods imported from the United States in 2018.

Here are the top U.S. imports from Mexico in 2018.

Vehicles

At $93 billion, cars or auto parts accounted for nearly a quarter of all goods entering the United States from Mexico in 2018. This includes $22 billion in car engines, $5 billion in car seats, car and $5 billion worth of chassis. American automakers like General Motors (GM) and Ford (F) have factories in Mexico. Most of the cars and auto parts that the United States imports from Mexico are made by American automakers and destined for the American market, even if they are made in Mexico.

Electrical machinery and equipment

Nearly $64 billion in US imports in 2018 were small electrical appliances like phones, televisions, vacuum cleaners and spare parts. This includes $26 billion worth of computers and computer parts, semiconductors and software.

Machinery and mechanical devices and parts

The United States imported $63 billion worth of goods in this category in 2018. Mexico is a huge producer of home appliances, including washing machines, refrigerators and air conditioners. Between 30% and 44% of US imports in this category come from Mexico each year.

Agricultural production

Mexico is the main source of all US agricultural imports. In 2018, this included $5.9 billion in fresh vegetables, $5.8 billion in fresh fruit, $3.6 billion in wine and beer, $2.2 billion in snack foods, and $1.7 billion dollars of processed fruits and vegetables. . Avocados, tomatoes, onions and peppers are popular vegetable imports from Mexico. The United States imported $2.3 billion worth of tomatoes and $1.7 billion worth of avocados from Mexico in 2018. The United States also imported $3.5 billion worth of beer, including Mexican beers for which the country is famous, such as Corona, Dos Equis and Modelo, and the many tequilas for which the country is renowned. Mexico also supplies the United States with the many tequilas for which the country is famous.

Mineral Fuels

Although he is one of the greatest crude oil producers in the world, American consumption exceeds national production. In 2018, the United States imported $16 billion worth of mineral fuels from Mexico. This category includes coal, oil and natural gas.

medical instruments

The $15 billion in imports in this category include instruments used in surgeries and medical procedures.

U.S.-Mexico trade relationship boosts both economies

Mexico is an integral part of the US economy and could soon become the United States’ largest trading partner. In May 2019, amid speculation about the impact of tariffs on imports from Mexico on the average American consumer, Larry Kudlow, then director of the National Economic Council, acknowledged that the costs of tariffs are generally passed on to consumers. by companies. In the case of a tariff imposed on Mexican imports, the producers of the goods would likely not absorb the additional tax themselves and would more likely pass it on to consumers, making all those goods more expensive.

After NAFTA, many North American companies have built supply chains that stretch across Mexico, the United States and Canada; not only would the tariffs hurt the American consumer, but it was predicted that retaliation from the Mexican government would hurt the American economy in the form of new trade barriers. Conversely, the Mexican economy is slowing down and its currency has weakened; the country’s trade relationship with the United States has been a beacon of hope in an otherwise bleak economic landscape. The trade relationship between the two countries serves to sustain both economies as a mutually beneficial exchange.