MARCH 2025
Economic pulse of the Americas:
The US-Mexico trade balance in context In 2024, the US deficit with Mexico in goods hit almost $172 billion. But does that number tell the whole story?
The bigger picture is that Mexico relies heavily on USmade intermediate goods (inputs) that are often
components of finished products exported to the United States. Mexico has historically sourced around two-thirds of imported inputs from the United States, demonstrating robust
supply chain integration.
63.7%* How reliant is Mexico on US inputs? *% of inputs imported from US (average, 1994-2022) Source: World Bank's WITS
BUT WHY DOES THIS MATTER? Intermediate goods are inputs used to produce final products. The
United States is twice as competitive as Mexico in producing intermediate goods, according to WTO data.* This makes for a natural relationship where supply chains are deeply integrated and where Mexican exporters are reliant on US inputs. *As defined by their revealed comparative advantage