US trade deficit with Mexico hits near 10-year high

5/4/2017 Financial Times

4350685550_dbd28c7e50US trade deficit with Mexico climbed to a near 10-year high in March, as the collapse in the peso triggered by Donald Trump’s presidential victory continues to fuel demand for goods made south of the border.

The trade gap in goods with Mexico stood at $7.03bn in March, a 30 per cent jump compared to the year-ago period and the highest level since October 2017.

The rise comes as the peso suffered a 17 per cent collapse in value against the greenback last year. Despite rallying more than 9 per cent since the start of the year, the peso, which is currently trading at around the 19 per dollar mark, remains some ways off from the 13 per dollar level it was trading at in 2014.

While the March trade deficit is the biggest deficit ever recorded for that month and the third worst month ever since records began in 1985, it should be noted that the data are not seasonally adjusted and do not take into account of inflation.

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