Mexico is now the leading exporter to U.S., not China (and has been since Q3 2022)

The U.S.-China trade relationship is deteriorating, and 🇲🇽 Mexico has been a beneficiary as companies look to countries with friendlier governments.

  • Drawing on a quarterly series measuring trade on a balance of payments basis, Mexico took the lead from China in the third quarter of 2022.

There’s a financial element to this narrative as well: one of the hottest currency pairs this year has been the Mexican peso vs. the Japanese yen (MXNJPY, -0.81%), which has surged 28% this year.

  • The dollar meanwhile has climbed 5% vs. the offshore Chinese yuan (USDCNH, 0.17%).

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