Viewing a single comment thread. View all comments

TrustM3ImAnEngineer t1_jdhj8xn wrote

I’m assuming Texas may be the crossing point but the final destination of the goods has to be all over the US.

Edit: after a simple google search, the 2022 trade between the US and Mexico was $780 billion. This chart makes more sense to me now.

666

TimeSuck5000 t1_jdhonus wrote

And there’s no insight into exports vs imports. Is the trade with Asia cheap goods that Mexico adds value to and sells to the US and Europe? Or is Asia a final destination for exports? Can’t tell.

191

6158675309 t1_jdijgc2 wrote

Yup, a lot of firms from China setup shop in Mexico when tariffs were put in place. Intermediate stop, some minor change and now...Made in Mexico vs China.

67

MedioBandido t1_jdipgj3 wrote

Yes to an extent. It’s not 1:1. There’s a pretty convoluted formula used to determine country of origin depending on where the components come from. If you shipped 100% of components to Mexico where you glued them together, I don’t think you’d get away with an Hecho en Mexico.

22

6158675309 t1_jdjjh9h wrote

Yeah. I’m not sure for country of origin. I will see if I can find it. I was listening to a podcast and it was about Chinese firms buying up massive sites for factories in Mexico to get around US tariffs.

7

TheLizzardMan t1_jdi7jx6 wrote

A lot of distribution centers for various companies are located in Texas. This stuff definitely isn't all staying there. lol

28

citizenplatypus t1_jdkz3qb wrote

The trade with the US is over 700 billion. It is actually the trade between just Texas and Mexico

7

EggCouncilCreeps t1_jdizx6a wrote

Yeah, I don't know shit about texas geography but I imagine there's a hell of a port in houston.

1

iwouldhugwonderwoman t1_jdmox4y wrote

This is what my company has.

We have a manufacturing facility across the border in Mexico and a couple warehouses in Texas. We import the parts from Mexico, to the Texas warehouses and then route them to the appropriate manufacturing facility in the USA (not Texas) so they can be used in the higher level assembly.

1

TexasTwing t1_jdj4p00 wrote

Nope. Texas exports to Mexico include oil and gas, chemicals, nuclear reactors, iron, steel, plastics, and copper. Mexico’s exports to Texas include nuclear reactors, plastics, oil and gas, furniture, fruit, and nuts. Both are over $100 billion in each direction.

Texas’ GDP is 45% more than Mexico’s, so it’s not unreasonable for two neighbors to have so much trade.

18

KenDefender t1_jdks636 wrote

They are both sending nuclear reactors to each other on the regular? What's up with that

7

Yglorba t1_jdl47uu wrote

What if we just passed a nuclear reactor back and forth... forever.

6

TrustM3ImAnEngineer t1_jdj7x9v wrote

So Mexico doesn’t trade with Iowa, for example?

2

TexasTwing t1_jdj8cv8 wrote

About $3 billion total imports and exports between Mexico and Iowa. Makes sense. Iowa is smaller and further. Iowa’s GDP is 1/6th of Mexico’s.

12

TrustM3ImAnEngineer t1_jdj8nh0 wrote

I guess it’s $780 billion in 2022 for total US to Mexico trade. Makes more sense now.

3

joelaw9 t1_jdi99q4 wrote

A big point is that many factories in Texas will often have a Mexican equivalent that 'sells' the product back to the factory before shipping it wherever.

9

LightningCozy t1_jdjlkm6 wrote

I-35 goes from Mexican border at Laredo, TX north to Duluth, MN.

Once free trade was opened up between, the US, Mexico, and Canada the number of 18-Wheelers going north and south on it everyday skyrocketed!

5