Mexico broke a record in its market share in the United States, reaching a coverage of 15.4% of total imports of products to that destination in 2023.

With this, Mexico surpassed the market share of China (13.9%) and Canada (13.7%), according to data from the Department of Commerce.

With an inter-annual drop of 4.9%, imports of goods to the United States were 3,084,092 million dollars.

Geopolitical tensions between China and the United States have triggered a shift towards nearshoring in favor of Mexico. 

Export Development Canada (EDC) said that the relocation of manufacturing operations to Mexico addresses the risks of supply chain disruptions and is driving U.S. trade back to North America, especially in the automotive industry. 

However, Chinese investments have also been pouring into Mexico, stoking concerns that Chinese companies will circumvent tariffs and undermine North American free trade agreements.

Previously, Mexico’s market share of total U.S. imports had the following sequence: in 2019 it was 14.3%, in 2020 it dropped to 13.8%, in 2021 it fell back to 13.6% and in 2022 it rose to 14.0 percent. 

EDC is a Canadian government agency dedicated to facilitating international trade and investment. Its primary mission is to help Canadian companies succeed in global markets.

Market share

The United States is the world’s largest importer of goods and its top three merchandise trade partners are, in descending order, Mexico, Canada and China.

In 2023, Mexico exported products to the U.S. market for a customs value of $475,607 million, followed by China ($427,229 million) and Canada ($421,096 million).

On the other hand, in China there are signs of improvement with the increase in economic activity, but consumer confidence remains low. 

EDC reported that depressed global demand continues to hamper Chinese exports, while the slowdown in the real estate sector persists. 

Global demand

The uneven economic recovery, coupled with ongoing geopolitical tensions, is keeping investor confidence in China weak.

At the same time, globally, subdued demand and adequate supply have kept the overall commodity market in balance and prices continue to fall. 

While the downward trend is expected to continue with the slow recovery in global demand, any material supply-side shocks would disrupt this trend and push prices higher.