Mexico is coming out on top in the US-China trade war – Level 2

Keyword Description
Trade Partner A country that regularly buys and sells goods with another country.
Exports Goods or services sold to another country.
Tariff A tax on goods coming into or going out of a country.

In 2026, Mexico strengthened its role as the United States’ leading trade partner. Data shows that Mexico’s exports to the U.S. increased, making up 16.9% of the U.S. import market. This growth is significant because it indicates that Mexico is benefiting from changes in the global trade scene, particularly the ongoing U.S.-China trade tensions.

While Mexico’s exports grew, those from Canada and China to the U.S. decreased. Canadian exports dropped to 11.2% of the U.S. import market, while China’s share fell to just 6.6%. The U.S.-China trade conflict has led America to look elsewhere for imports, benefiting countries like Mexico and Taiwan. For instance, the U.S. imports from Taiwan rose by almost 100%, mainly due to the need for semiconductors.

The U.S. and Mexico have a trade agreement called USMCA, which helps facilitate their business despite some tariffs. The U.S. still buys a lot from Mexico, including cars and metals. In early 2026, the two countries engaged in trade worth $147.32 billion, a record amount.

Overall, the shift in U.S. trade patterns shows how global events, like trade wars, can influence which countries trade more with each other. Mexico’s position as a top U.S. trade partner highlights its importance in the global economy and its ability to adapt to these changes.

Bridging words

These words sound similar in English and Spanish: Why not practice them now?

English Spanish
Export Exportar
Market Mercado
Trade Comercio

Time to discuss

  • Why do you think trade between countries is important?
  • How can trade wars affect the economies of different countries?
  • What are some ways countries can resolve trade disputes?

Let’s Write

Answer the following questions in one paragraph

  • How has Mexico benefited from the U.S.-China trade war?
  • What role does the USMCA play in U.S.-Mexico trade relations?
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