Mexico Becomes Top US Trade Partner via AI Server Boom

Mexico has emerged as the primary trade partner of the United States, surpassing Canada in 2024. This growth is driven by a surge in artificial intelligence infrastructure production, with Taiwanese firms including Inventec, Foxconn, Wistron, and Pegatron shifting operations to Mexican border cities like Juárez. These companies utilize the U.S.M.C.A. framework to ensure duty-free entry of computer servers into the U.S. market.

Donald Trump has pursued a campaign of economic nationalism, imposing tariffs on over 80 countries to address trade deficits and security concerns. However, the deep integration of North American supply chains has limited the impact of these measures on the bilateral trade relationship.

Under President Claudia Sheinbaum, the Mexican government is working to maintain trade stability by increasing cooperation against drug cartels and strengthening national-security reviews of foreign investment. Economy Secretary Marcelo Ebrard has noted that the global landscape has shifted, stating that "free trade is no longer the reality we are living."