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Mexican trade picks up despite Trump

Mexican exports have been accelerating for months, despite uncertainty over the fate of the nation’s US trade deal. The April export print and the national trade surplus both set post-pandemic highs.

This reflects the success of Mexican manufacturers and a subtle evolution of the “connector economy” phenomenon. More “intermediate goods” are being imported to make exports – and not from where you might expect.

Japan, South Korea and Vietnam are increasing shipments to Mexico as imports from China fall back. But FDI from China continues to grow.