Background and Context
For the first seven months of 2025, Mexico’s shipments expanded by 34.8%, surpassing $103,000 million, while China’s exports plummeted by 28.1%, totaling $65,455 million. Analysts attribute this shift to the tariff hikes imposed by Washington on Chinese products.
Mexico has dethroned China’s 23-year dominance as the leading exporter of electronic-electrical equipment to the United States, according to data from the Department of Commerce. This change comes after Japan’s brief supremacy in this market.
In 2001, Mexico was the top exporter in this category for just one year before China entered the World Trade Organization (WTO) and overtook all competitors in the US market for imported electronic-electrical products the following year.
Recent Export Trends
From January to July 2025, Mexico exported electronic and electrical goods—including related manufacturing such as wiring harnesses and rechargeable batteries—worth $103,534 million, marking a 34.8% year-over-year increase.
Conversely, China’s exports fell by 28.1% to $65,455 million during the same period.
Focusing solely on electronic exports, Mexico’s shipments grew by 49.9% annually to $50,313 million, while China’s plummeted 36.5% to $39,405 million.
This industry encompasses products like computers, phones, broadcasting equipment, semiconductors, capacitors, resistors, coils, printed circuits, measurement instruments, and medical equipment.
Regarding electrical goods, Mexico’s exports grew by 6.2% to $28,125 million, while China’s sales dropped by 10.4% to $26,050 million.
Impact and Strategy
According to Mexico’s Secretariat of Fiscal and Credit Public (SHCP), 91% of Mexico’s exports to the US are manufactures, with notable growth in computing equipment and electronics, which increased by 49.0% annually from January to July 2025.
The nearshoring strategy encourages US and European companies to reduce their reliance on Asia. Mexico emerges as a crucial strategic partner for diversifying risks amidst growing trade tensions between the US and China.
Opportunities for Productive Integration
Gregorio Canales, director general of North America Investment Solutions, highlighted Mexico’s potential in developing electronic production due to its competitiveness in final product assembly.
As Mexico increases electronic production volume, it has greater chances of developing its value chain. Canales pointed out that certain component production, like computer screens, is more challenging due to substantial investments required.
“I believe we haven’t done enough in this integration. We’ve been content with large producers like Lenovo coming here instead of designing a comprehensive strategy to relocate suppliers or encourage Mexican SMEs to participate in the value chain,” Canales said.
Key Questions and Answers
- What is the main reason for Mexico overtaking China in exporting electronic-electrical equipment to the US? Analysts attribute this shift to tariff hikes imposed by Washington on Chinese products.
- How has Mexico’s export growth compared to China’s in the electronic and electrical goods sector? Mexico’s exports grew by 34.8% and 49.9% (for electronics only), while China’s exports fell by 28.1% and 36.5%, respectively.
- What industries does the electronic-electrical equipment sector encompass? This industry includes computers, phones, broadcasting equipment, semiconductors, capacitors, resistors, coils, printed circuits, measurement instruments, and medical equipment.
- Why is Mexico becoming a crucial strategic partner for the US and Europe in reducing Asia reliance? The nearshoring strategy encourages companies to diversify risks amidst growing trade tensions between the US and China.
- What challenges does Mexico face in developing its electronic production value chain? Certain component production, like computer screens, is more challenging due to substantial investments required.
