Trade deficit with China at historic highs

Even if Mexico substitutes imports, imports from China may only grow.

The Big News Breakdown. Unpacking this week’s most important news.

Imports from China coming into Mexico reached all time highs in the first half of 2025. This comes at an inconvenient time, since Mexico is currently trying to convince the US that it is not a back door to cheap Asian goods going into the US.

The government has since tried crackdowns on illegal imports from China, as well as proposing that Mexico should substitute Chinese imports by making similar products domestically.

Even if everything went well with the plan, import substitution industrialisation would not necessarily mean a decrease in products coming in from China.