Trading Partner Portal: Mexico

United States, Mexico and California flags displayed side by side.

CalChamber Submits Comments on Review of US-Mexico-Canada Agreement
CalChamber, November 4, 2025

Consul General Explains Mexico’s Reaction to Changed Approach of US Trade Policy
CalChamber, September 26, 2025

Guest Commentary: Perspective on Impact of New U.S. Tariffs on Mexico
Christian Tonatiuh González Jiménez, Consul General of Mexico in Sacramento,
March 4, 2025

Trump Tariffs: Some Put on Hold, Others Take Effect
CalChamber, February 4, 2025

Trump Tariff Plans Cause Concern, Much Speculation
CalChamber, January 31, 2025

Trade Overview

Mexico is the third largest country in Latin America, with the U.S at its northern border and Guatemala, Belize, and majority of Latin America to the south. It is the largest Spanish speaking country in the world, and is culturally, ethnically and regionally diverse, with many cultural influences, but a majority coming from its indigenous heritage. Britannica

Mexico has a population of 131.95 million, with around 80% of its population in urban areas and 45% of its population under the age of 25. Its GDP is over $1.83 trillion as of 2025. Over $63.7 billion in remittances flowed into Mexico in 2023, 7.6% more than the year prior, setting another record and making it the second country in the world with the most remittances. Mexico is ranked #51 in world competitiveness by the World Economic Forum, and 140/180 for perceptions of corruption by Transparency International.

It has a developing market economy that has close ties with the U.S. and has ranked as the 15th largest economy in the world, and the 2nd largest economy in Latin America. It typically shows slow, stable economic growth, and has kept this trend since the 1990’s. This is mostly due to its high rate of labor informality, poverty, and decline in oil production, with labor informality being 56% and poverty at 44% as of 2023. It is considered upper middle-income member of the Group of 20 or G20 and the Organization for Economic Co-Operation and Development (OECD). U.S. Department of Commerce

U.S. – Mexico Trade

Mexico is the United States’ southern neighbor and largest bilateral trading partner. In the last few decades, two-way trade in goods between Mexico and the United States increased dramatically from $81.4 billion in 1993 to $872.83 billion in 2025, up from $839.55 billion in 2024. Since 1995, Mexico has been a top trading partner for the U.S. and is the first or second largest trading partner for more than half of U.S. states.

United States’ exports to Mexico totaled $337.96 billion in 2025. Top export categories from the U.S. to Mexico included computer and electronic products ($72.35 billion), transportation equipment ($42.26 billion), chemicals ($29.04 billion), petroleum and coal products ($28.48 billion), and non-electrical machinery ($23.12 billion). There are over 50,000 small and medium sized enterprises in the U.S. that export to Mexico.

In this same year, imports from Mexico to the U.S. totaled around $534.87 billion. The top five import categories being transportation equipment ($158.89 billion), computer & electronic products ($142.42 billion), electrical equipment, appliances & components ($47.91 billion), non-electrical machinery ($33.57 billion), and agricultural products ($17.76 billion).

Total services trade between Mexico and the U.S. in 2025 equaled $96.42 billion with services exports totaling $52.40 billion. Top services exports categories were travel, other business services, manufacturing, financial services, and charges related to intellectual property

California – Mexico Trade

California – Mexico Trade

Mexico is California’s top export market, purchasing 18.53 percent of all California exports. California exports to Mexico amounted to $34.91 billion in 2025. Total exports to Mexico consisted of computer and electronic products ($10.10 billon), transportation equipment ($4.49 billion), non-electrical machinery ($2.83 billion), processed foods ($2.36 billion), and electrical equipment, appliances & components ($2.11 billion).

California imported $61.56 billion in goods from Mexico in 2025. The top import categories were computer and electronic products ($17.95 billion), transportation equipment ($13.11 billion), agricultural products ($6.32 billion), electrical equipment, appliances & components ($4.51 billion), and miscellaneous manufactured goods ($3.49 billion). California was the third largest importing state for goods from Mexico in 2025.

According to Visit California, nearly 8.2 million people visited California from Mexico in 2025, spending over $5.16 billion.

FDI – Mexico

U.S. foreign direct investment (FDI) into Mexico totaled $168.8 billion in 2025 and Mexican FDI into the US totaled $48.7 billion in the same year. Mexican FDI into the U.S. supported 97,700 jobs and contributed a value of $2.1 billion to expanding U.S. exports. The top industry sectors for Mexican FDI in the U.S. were: food and beverages, auto components, plastics, financial services, business services, and software & IT services. Select USA

In California, the fifteenth largest source of FDI through foreign-owned enterprises (FOEs) is Mexico. In 2025, Mexican FOEs in California provided 14,700 jobs through 586 firms amounting to $1.77 billion in wages. The top jobs by sector are wholesale trade, manufacturing, professional/business services, retail trade, and financial activities (World Trade Center Los Angeles FDI Report).

More Articles:

1810 – 2023, U.S.-Mexico Relations
Council on Foreign Relations

Governor Newsom Announces Binational Partnership with Mexico to Advance New Port of Entry at San Diego-Tijuana Border
Office of Governor Gavin Newsom, October 24, 2022

University Of San Diego Releases Report on California-Baja Economy
KPBS, February 21, 2022

Southern Connection: Innovation Clusters in Mexico and the Bridge to Silicon Valley
Bay Area Economy, June 2021

Interview Series Featuring California’s Key Trading Partners – Featuring Liliana Ferrer, Consul General of Mexico in Sacramento:
Ambassador Recaps Trade Pact Highlights, COVID-19 Impact, State Relationship
CalChamber, July 24, 2020

VIDEO in Spanish: Oportunidades para empresas socias | Doing Business in California – discussion with Carlos J. Valderrama, California Trade and Investment Representative Americas of the Office of Business and Economic Development of California
AmCham Mexico, September 9, 2020

The Baja California and Nuevo Leon Industry, Innovation, and Talent Clusters: Growing the California-Mexico Binational Economy
Bay Area Council, July 2020

Governor Newsom and Governors from Baja California States Re-Establish “Commission of the Californias
Office of Governor Gavin Newsom, December 4, 2019

Three California Governors Revive Cooperation Agreement
The San Diego Union-Tribune, December 4, 2019

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