Tariffs, Wsj: Mexico unexpected winner in trade war with the US
It was feared that the Central American country's economy would collapse, instead manufacturing exports to the US grew by 9%
"When President Donald Trump began raising tariffs earlier this year, government officials and economists feared that Mexico's export-oriented economy would suffer a devastating blow. Instead, Mexican exports to the United States have grown'. The Wall Street Journal wrote this, pointing out that 'despite high tariffs on automobiles, steel and aluminium destined for the US market, Mexican manufacturing exports to the US rose by almost9% from January to November, compared with the first 11 months of 2024, according to Mexican government data'.
Exports of the automotive sector to the US "fell by almost 6% over the same period, but exports of other manufactured goods grew by17%. Trade in goods between United States and Mexico, a country led by President Claudia Sheinbaum, is on track to reach a record nearly $900 billion this year'. According to central bank forecasts, Mexico's economy is expected to grow by 0.3% in 2025.
Weak growth, notes the US business daily, "but far from the 1% contraction expected at this point," said Kathryn Exum of Gramercy Funds Management. In 2023 Mexico overtook China as the largest foreign supplier of goods to the US and also became its largest buyer, thanks to deep regional manufacturing integration and a large pool of young, cheap labour. Many of the US imports from Mexico are intermediate goods used to produce exports destined for the US again.
