Weak peso boosts Mexican exports to the U.S. during March
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The U.S. posted a US$ 7 billion trade deficit with Mexico in March, the highest since November 2007, the Commerce Department revealed.
The weakness in the Mexican peso, battered by U.S. President Donald Trump's tough talk on trade, made it cheaper for American firms to buy Mexican goods in dollars. Meanwhile, a strong dollar has reduced demand for U.S. exports
The US$ 28.1 billion in Mexican products shipped across the border marked an all-time high. The top Mexican exports to the U.S. were cars, machinery, and medical equipment.
During the first quarter, trade deficit with Mexico increased 14% compared to the same period of 2016. That is due at least in part to a drop in the peso, which is down more than 8% against the dollar this year.
Mexico is the U.S.'s third-largest trading partner in goods, and the factories of the two nations are closely intertwined.
Among the biggest buyers of Mexican goods in the U.S. are manufacturers importing components for their products. Likewise, parts exported from the U.S. make up about 40% of the value of Mexico's manufactured exports.