Exports from Mexico to the United States remained in the first half of 2022 in a proportion practically the same as before the trade war between the United States and China began in March 2018.
From January to June of the current year, sales of products from Mexico to the US market were 224,057 million dollars, which represented 13.8% of total US imports in the same period, a market share slightly higher than 13.7 % earned in the first half of both 2017 and 2018.
At the same time, as reported by the Census Bureau this Thursday, Chinese exports to the United States totaled 271,742 million dollars in the first half of 2022, which represents a share of 16.7%, much lower compared to the 20.2% reached 2018.
China ranked as the first external supplier of merchandise to the United States from January to June 2022 and Mexico occupied the second position.
The trade war began after the US Trade Representation (USTR) concluded that China is engaged in forced technology transfer, cyber theft of US intellectual property and trade secrets, of discriminatory and non-market licenses, and strategic acquisitions of US assets financed by the State.
The USTR consequently imposed four rounds of tariffs, with rates between 7.5 and 25% on an estimated $250 billion worth of US imports from China. In turn, China responded with four rounds of tariffs on $110 billion worth of imported US goods. Both sides have granted some exceptions, but most of the tariffs remain in place.
For its part, Canada has had a better performance, driven mainly by higher prices of energy products and raw materials, where it bases part of its competitiveness. In the first half of 2022, it ranked third as a supplier of goods to the United States and established itself as its first trading partner.
Exports of products from Canada to its northern neighbor totaled 222.695 million dollars, a level very close to that of Mexico, and represented 13.7% of total US imports in that period.
In year-on-year terms, with the United States as the destination market, Mexican exports grew 20.2% in the first half of 2022, while Chinese exports rose 18.9% and Canadian exports 32.1%.
In total, US imports of goods climbed at an annual rate of 21.6% in the first half of the current year, to 1,335,264 million dollars.
According to an analysis of the US Congress, the Administration of President Joe Biden is consolidating a complex mix of political initiatives of the Trump Administration with its own to defend itself against the “unfair” economic policies of China and threats to the national security of the United States. .
The Biden Administration has signaled that its priorities are securing American supply chains, boosting America’s competitiveness, and coordinating with its allies and partners.
Other factors have influenced international trade, such as the shortage of semiconductor chips, disruptions in the supply of certain metals (palladium, rhodium) or chemical gases (neon, krypton) due to Russia’s invasion of Ukraine, and logistical problems, especially in China derived from the Covid-19 pandemic.
Considering only the month of June, Mexican exports to the United States grew 19.5% (to 39,432 million dollars), Chinese ones increased 22.1% (to 48,625 million) and Canadian ones advanced 26.2% (to 40,606 million), at annual rates .
