On the flip side, Mexico is the second largest goods market for the United States and the third-largest export partner when goods and services are combined, after Canada and China. The United States has a $60.7 billion trade deficit in goods with Mexico on bilateral trade of $533 billion, with merchandise exports totaling $236 billion in 2015, according to the Office of the U.S. Trade Representative.
More specifically, trade with Mexico supports jobs in two crucial ways: by allowing for the creation of a regional manufacturing platform in which cheaper Mexican inputs make American products more competitive in global markets and by saving American consumers money that is then spent on goods and services that indirectly help pay wages for other workers
The U.S. and Canadian economies are so integrated today that it would be counterproductive for the United States to ramp up regulations on Canadian imports, CM&E noted.
Mexico will try to pursue a more diverse trade strategy so it isn’t as hyper-dependent on the United States