The Commerce Department reported Wednesday that there was a record U.S. trade deficit with Mexico in 2024.
This negative balance was $171.809 billion dollars, which is 12.7% more than the negative balance in 2023.
The amount resulted from U.S. imports from Mexico of $505.851 billion and U.S. exports to Mexico of $334.041 billion.
U.S. trade deficit with Mexico
Mexico ranked in 2024 as the top U.S. trading partner with bilateral trade in goods totaling $839.9 billion.
Mexico was also the leading external supplier of goods to the U.S. market. In reverse trade flows, Mexico was the second largest destination for U.S. exports, behind Canada.
Globally, the United States is the leading importer and the second largest exporter of goods, second only to China.
The overall U.S. trade deficit reflects that the United States consumes more than it produces and imports more than it exports.
Donald Trump remains a strong critic of the U.S. trade deficit. Both in his current term as president and in his first.
The main cause of this deficit is the low rate of domestic savings in households, companies and the government, compared to its investment needs. To balance it, the country depends on external financing from nations with higher savings, such as China.
Turning point
The Mexican government seeks to ally itself with importers from the United States and Canada to preserve the benefits of the USMCA. To this end, the Ministry of Economy has established a “parallel room” for consultation with the private sector.
This mechanism includes regular meetings with officials and representatives of the Business Coordinating Council (CCE). The objective is to define Mexico’s position in key sectors such as energy, automotive and agriculture.
On January 20, 2025, Trump instructed the Secretaries of Commerce and Homeland Security to evaluate illegal migration and fentanyl trafficking from Mexico. In addition, he asked for recommendations on trade and security measures by April 1, 2025.
It also warned that it could apply a 25% across-the-board tariff on all Mexican imports as of February 1, 2025, although it then provided for a one-month extension. However, this measure could violate the T-MEC, which would allow Mexico to file a trade dispute. It could also violate WTO rules.