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Or sign-in if you have an account.The data suggest Mexico’s trade profile is shifting back toward lower-value goods that require simpler assembly, or none at all. Photo by Paul Ratje/BloombergUnited States tariffs pushed by President Donald Trump and supply-chain disruptions are eroding Mexico’s gains as a manufacturing hub, raising the risk that the country slips back into exporting lower-value goods that create few jobs or investment opportunities.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorOn the surface, Mexico’s exports are still breaking records, giving President Claudia Sheinbaum a headline number to tout as proof of economic resilience. Shipments surged nearly 33 per cent from a year earlier in April to US$72 billion, according to official data released Monday. Imports climbed 24 per cent to a record as well, but with a telling detail: intermediate goods used in manufacturing and assembly made up nearly 80 per cent of total imports in the first four months of the year.“Mexico’s export profile has deteriorated significantly since last year,” said Gabriela Siller, director of economic analysis at Banco Base. “Mexican exports have become extremely reliant on inputs from Asia that are just assembled in Mexico.”Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe data suggest Mexico’s trade profile is shifting away from more lucrative industries built around highly integrated supply chains, such as its vast auto sector, and back toward lower-value goods that require simpler assembly, or none at all.That marks a setback for Sheinbaum’s plan to move Mexico beyond its maquiladora model and toward higher-value exports to the U.S. The goal, outlined in her “Plan Mexico” economic blueprint, now faces even steeper challenges as a high-stakes review of the Canada-U.S.-Mexico Agreement trade pact approaches.“Mexican factories are essentially triangulating products. They receive high-value inputs and package them for shipment to the U.S.,” Siller said. “If the U.S. strategy was to transform Mexico into a new, closer China, it’s succeeding.”In fact, Mexico’s exports of light vehicles have stagnated as U.S. tariffs and other barriers to trade with its northern neighbour — by far its top main export market — have increased.At the same time, exports of computer equipment spiked by 144 per cent last year, doubling their share of the country’s total exports to almost 13 per cent, largely due to lower trade barriers for those products in the US plus strong demand from the AI-driven data centre boom. But such triple-digit growth can mask where the Mexican economy would benefit more.While Mexico’s automotive industry employs 800,000 people, computer equipment assembly employs only 60,000, mainly in the northern part of the country where production is concentrated.Mining is another sector that underscores the trend of growth without adding value. Metals exports rose 71 per cent in April and by an even higher level during the first four months of this year.—With assistance from Alex Vasquez and Mario Baker Ramirez. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.