What does the US
import from Mexico? A whole lot, by Irina Ivanova, 6/1/19, cbsnews.
The U.S. imported $372 billion worth of products from Mexico in
2018, more than our trade total with Canada.
"U.S. trade with Mexico is basically all about cars,"
said one expert, with the U.S. importing $93 billion worth of cars or car parts
last year, including $22 billion worth of car engines, $5 billion in car seats
and $5 billion in chassis.
Second to cars is tech equipment, including $26 billion of
computers and computer parts, semiconductors and software.
Americans also imported $6.7 billion worth of vegetables and
$5.3 billion of fruit and nuts from Mexico.
The Trump administration's
proposal to impose punishing tariffs on Mexico, rising to 25% over the course
of just a few months, took many trade experts by surprise. Some economists even
predict a recession if an agreement isn't reached by the fall, when the full
tariffs would start taxing billions worth of consumer and industrial products
crossing the southern border.
To understand the
concerns, it helps to look at the flow of goods between the two countries.
Mexico is now the U.S.' largest trading partner, surpassing Canada last year to
take the top spot. The U.S. imported $372 billion worth of products from Mexico
in 2018, according to government trade data. The top category was
cars and car parts, most of them by American automakers and intended for the U.S.
market. The U.S. also relies heavily on Mexico for machinery, furniture and
produce.
Among other imports from
Mexico, the U.S. got $93 billion worth of cars or car parts, according to UN
Comtrade, which keeps data on trade. That includes $22 billion worth of car
engines, $5 billion in car seats and $5 billion in chassis.
"U.S. trade with
Mexico is basically all about cars," Torsten Slok, chief economist at
Deutsche Bank, wrote in a presentation to investors Friday.
Second to cars is tech
equipment—including $26 billion of computers and computer parts, as well as
semiconductors and software.
Mexico is also a heavy
producer of home appliances, including washing machines, refrigerators and air
conditioners. Between 30% and 44% of the U.S.' imports in this category come
from Mexico, according to analysis from Goldman Sachs.
Then there's agricultural
products—one-third of which the U.S. imports from Mexico. Americans also
imported $6.7 billion worth of vegetables and $5.3 billion of fruit and nuts
from our southern partner. Among them were $2.3 billion of tomatoes and $1.7
billion of avocados.
The category of
"beverages, spirits and vinegar" racked up $5 billion of exports to
the U.S. Beer made up $3.5 billion of that figure and spirits another $1.6
billion. That includes Mexican beers Corona, Dos Equis and Modelo, and the many
tequilas for which the country is renowned.
"The bottom line is
this threat hurts the U.S. economy via consumer spending getting hit,"
Jack McIntyre, portfolio manager at Brandywine Global, said in an emailed note.
Lower consumer spending translates into a slower economy—on both sides of the
border.
Said Oxford Economics:
"Since goods tend to cross the border multiple times – about 40% of US
imports from Mexico and 75% of US exports to Mexico are intermediate goods –
the duties represent a significant risk to business activity both north and
south of the border."
Norb Leahy, Dunwoody
GA Tea Party Leader
No comments:
Post a Comment