Mexico maintains trade advantage despite global US tariffs

Mexico maintains a favorable position regarding the new wave of tariffs that the United States will apply generally to the rest of the world, considered BBVA, the bank with the largest presence in the country.

Although the White House announced that a temporary 10 percent tax on imports came into effect yesterday, products shipped with the Agreement between Mexico, the United States and Canada (USMCA) will be exempt, which preserves preferential access for most Mexican exports and reinforces its relative advantage over other trading partners.

“Mexico’s structural integration with the US economy will likely avoid an abrupt loss of market share. Geographic proximity, deep integration in supply chains, competitive labor costs and the institutionalization of the USMCA continue to underpin its position as the neighboring country’s main trading partner,” BBVA indicated.

The bank’s research indicates that in 2025, US imports from Mexico totaled 534.9 billion dollars, of which 81.3 percent (equivalent to 435 billion dollars) entered without tariffs, mainly under the coverage of the T-MEC.

Thus, last year Mexico became the main destination for exports of goods from the United States and surpassed Canada.

“This result reflects Mexico’s stronger relative position compared to its main competitors. In principle, the fact that the majority of Mexican exports are exempt from the 10 percent tariff implies that Mexico will maintain a significant advantage to continue being the main trading partner of the United States.”

Last week, the United States Supreme Court ruled that the International Emergency Economic Powers Act does not empower the president to impose tariffs unilaterally, thereby nullifying the widespread tariffs applied based on that argument.

A day later, President Donald Trump announced a temporary 10 percent global tariff, which took effect yesterday, and will later increase to 15 percent.

“At this point, the combined effect of the Supreme Court ruling and President Trump’s decision to impose a global tariff of 10 percent, with an exemption for goods that comply with the T-MEC, reinforces the advantage of the member countries of the agreement and creates a more favorable environment for Mexican exports to the neighboring country and for investment in the country,” BBVA said.

He added that the fact that the goods covered by the T-MEC have been excluded from the new 10 percent tariff constitutes “a positive sign regarding the review process of the trade agreement scheduled for July.”

And since only products that comply with the rules of the treaty can enter the United States without tariffs, it is in Mexican companies’ best interest to use more inputs and content made in Mexico so as not to lose that benefit and avoid the new tax, BBVA concluded.