Mexico Top US Trade Partner US$309.7B in Exports Through July

Mexico strengthened its role as the United States’ leading trade partner in the first seven months of 2025, as exports to its northern neighbor climbed 6.5% year-over-year to US$309.7 billion, according to US Census Bureau data released Thursday.

Mexican exports were led by automobiles, freight vehicles, auto parts, computers, wiring harnesses, and medical devices. The increase helped offset declines in shipments to other key destinations, including Canada, down 4.4% to US$230.4 billion, and China, down 18.9% to US$193.9 billion.

Overall US imports from the world rose 11% through July, reaching nearly US$2 trillion. At the same time, US exports to Mexico advanced 1.1% to US$197.2 billion. The main US goods shipped to Mexico included petroleum oils (excluding crude), auto parts, natural gas, corn, cars, and electric batteries.

Mexico accounted for 15.3% of total US trade between January and July, surpassing Canada by 13% and China by 7.8%. The US trade deficit with the world widened 22% to US$806.5 billion through July. Its deficit with Mexico rose 17.7% to US$112.6 billion.

Mexico’s exports to US accelerate 8.2% in July

Mexico’s exports to the United States accelerated in July, climbing 8.2% year-over-year to $45.37 billion, reported the US Census Bureau data.

The rebound followed mixed results in previous months: exports fell 2.7% in April, then rose 5.6% in May and 6.3% in June. In March, shipments surged 15.4%, a jump analysts attributed to US companies front-loading purchases ahead of a 25% tariff applied to Mexican products that fail to meet the USMCA’s rules of origin.

Mexico outperformed its two main competitors in the US market. Canadian exports to the US dropped 10.4% in July to US$32.17 billion, while China’s exports fell 35.3% to US$26.41 billion.

Meanwhile, US exports to Mexico increased 1% to US$28.99 billion, contrasting with declines in US shipments to Canada (down 6.1%) and China (down 13.7%). Mexico was the top destination for US goods in July and nearly tied with Canada in the year-to-date tally, positioning itself to overtake its northern neighbor as Canada maintains retaliatory tariffs on US products.

Overall, US imports from around the world rose 1.4% in July to US$292.25 billion, while exports climbed 4.9% to US$175.11 billion. No major new tariffs were applied that month, but analysts are watching the impact of “reciprocal tariffs” ranging from 10% to 41% that took effect Aug. 7.