Table of Contents

How Much Does the U.S. Trade With Mexico?

By

Nathan Reiff

Updated January 28, 2025

Reviewed by Caitlin Clarke

Fact checked by

Vikki Velasquez

The Zocalo in Mexico City's main square with the Mexican flag flying in front — John Coletti / Getty Images

President Donald Trump drew intense criticism from many in the international community for his protectionist stance and strict adherence to an “America First” agenda on the matter of trade during his first term. One of the primary targets of the President’s ire was the North American Free Trade Agreement (NAFTA). The agreement was signed in 1994 and established a trilateral trade bloc among Canada, Mexico, and the United States.

The updated United States-Mexico-Canada Agreement (USMCA), sometimes referred to as the “new NAFTA,” came into effect on July 1, 2020 after months of negotiations.

The USMCA is very similar to NAFTA in many respects but it made several important updates to the earlier agreement to reflect changes in trade since 1994. They include changes to intellectual property protections, regulations for the trade of automobiles and parts, and protections regarding labor laws.

The USMCA is still in its infancy but there's little question that trade with Mexico is a crucial feature of the U.S. economy as well as foreign policy.

Key Takeaways

The North American Free Trade Agreement (NAFTA) was a landmark treaty for free-market commerce between the U.S., Canada, and Mexico.
Some Americans saw NAFTA as giving an unfair advantage to the two nations and they strongly opposed the policy.
President Trump took aim at NAFTA, replacing it with the United States-Mexico-Canada Agreement (USMCA) in 2020.
Mexico became the largest trading-goods partner with the United States in 2019.
Mexico fell to second place behind China in 2020.

Trade Statistics

Mexico fell to being the second-largest merchandise trading partner with the U.S. behind China in 2020. Trade between the countries in 2020 amid the COVID-19 pandemic resulted in a substantial decrease in total bilateral merchandise trade to $538.1 billion, down from $614.5 billion in 2019 when Mexico was the largest merchandise trading partner with the U.S.

Merchandise exports were $323.1 billion in 2023, the most recent year for which data is available. Merchandise imports were $475.6 billion in 2023.

Important

The trade balance with Mexico went from a surplus of $1.7 billion in 1993 to a deficit of $152.5 billion in 2023.

The main exports are petroleum and coal products, motor vehicle parts, semiconductors and other electronic parts, computer equipment, and basic chemicals. The main imports from Mexico are motor vehicles, motor vehicle parts, computer equipment, audio and video equipment, and electrical equipment.

The U.S. had a surplus of $630 million with regard to services in 2022, the most recent year for which data is available. The total value of services exports was $37.7 billion. Imports were $38.3 billion. The bulk of services between Mexico and the U.S. are travel, transportation, business, and financial services.

Foreign Direct Investment

Foreign direct investment is a big component of the U.S.-Mexico relationship. The stock of U.S. foreign direct investment in Mexico was $130.3 billion in 2022. The stock of Mexican foreign direct investment in the U.S. was $54 billion in 2022.

Foreign direct investment on both sides greatly increased after NAFTA passed and when Mexico liberalized foreign investment restrictions in the 1980s and 1990s.

What Is the U.S. Trade Deficit With Mexico?

The merchandise trade deficit with Mexico was $152.5 billion in 2023.

What Are the Top Exports From Mexico to the United States?

The top exports from Mexico to the United States are motor vehicles, motor vehicle parts, computer equipment, audio and video equipment, and electrical equipment.

What Are the Largest U.S. Exports to Mexico?

The largest U.S. exports to Mexico are petroleum and coal products, motor vehicle parts, semiconductors and other electronic parts, computer equipment, and basic chemicals.

The Bottom Line

The United States and Mexico have a close relationship sharing the border. Mexico is one of the largest trading partners with the U.S., often taking the number one or two spots in terms of value traded. Trade improved drastically between the two nations after the passing of NAFTA in the 1990s.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

International Trade Administration. "The North American Free Trade Agreement (NAFTA)."
Office of the U.S. Trade Representative. "Agreement Between the United States of America, the United Mexican States, and Canada 7/1/20 Text."
Office of the U.S. Trade Representative. "United States–Mexico–Canada Trade Fact Sheet Rebalancing Trade to Support Manufacturing."
Office of the U.S. Trade Representative. "United States–Mexico–Canada Trade Fact Sheet Modernizing NAFTA into a 21st Century Trade Agreement."
Congressional Research Service. "U.S.-Mexico Trade Relations." Page 1.
Congressional Research Service. "U.S.-Mexico Trade Relations." Page 2.

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