Mexico exports to US hit record as trade deficit surges

Mexico set a new monthly record for exports to the United States in May, sending goods worth $54.18 billion — a 17.5% increase year-over-year Source: mexiconewsdaily. However, the U.S. trade deficit surged to $77.6 billion the same month, driven by rising imports of pharmaceuticals, semiconductors, and petroleum Source: aljazeera.

Diverging trade data

The record exports occurred despite U.S. tariffs on Mexican vehicles, steel, and aluminum not covered by the USMCA. Mexico's economy ministry called the figure a "historic record for any month" Source: mexiconewsdaily, while the U.S. reported its largest trade deficits with Vietnam ($20.6bn), Mexico ($20.1bn), and Taiwan ($19.4bn) Source: aljazeera. Mexico also imported $33.05 billion from the U.S. in May, up 17.5% annually, maintaining its position as the top buyer of U.S. goods Source: mexiconewsdaily.

USMCA renewal stalled

The U.S. government declined to renew the USMCA for an additional 16 years, but the trade pact remains in effect. President Claudia Sheinbaum expressed confidence in reaching a renewal agreement Source: mexiconewsdaily. Meanwhile, Toyota announced a $3.6 billion investment to expand U.S. production, a move President Donald Trump celebrated as "tariffs at work" Source: aljazeera.