Mexico is the main supplier of transportation equipment in the U.S.
MEXICO – Mexico has led and gained market share over the last four years in the U.S. transportation equipment import market, according to data from the U.S. International Trade Commission.
This sector includes motor vehicles, ships, tugboats, aircraft, spacecraft, construction and mining equipment; railroad locomotives and rolling stock, as well as certain auto parts, trailers, semi-trailers, motorcycles and mopeds, among others.
Mexican exports of this product group grew steadily from US$105.073 billion in 2016 to US$135.618 billion in 2019, before registering a decrease to US$111.426 billion in 2020.
However, Mexico's market share did not stop growing in this period. It went from 25.1% in 2016 to 26.2% the following year. Then it increased to 27.6%, 28.8% and 29.1% in the subsequent three years.
Thus, it reached a record high in its market share and remained as the leader in each year of the five-year period.
It is worth mentioning that U.S. imports of transportation equipment decreased from all major suppliers in the past year.
Mexico, Japan, and Canada, which were the three largest U.S. suppliers of transportation equipment in 2020, represented US$222.2 billion (58.1%) of U.S. imports.
Due to a larger decrease in imports from Canada, Japan became the second-largest U.S. supplier of transportation equipment in 2020, while Canada fell to third place.
In particular, U.S. imports of motor vehicles fell by 20.2%, from US$217.5 billion in 2019 to US$173.5 billion in 2020.
This decrease accounted for nearly half (49.4%) of the total decline in transportation equipment imports.
Prior to 2020, motor vehicle imports had steadily increased from US$200.7 billion in 2016 to US$217.5 billion in 2019.
Mexico was the leading source of U.S. motor vehicle imports in 2020, representing US$56.8 billion (32.9%) of the total, followed by Japan (US$32.6 billion or 18.9%) and Canada US$31.4 billion or 18.2%).
Source: El Economista