A longstanding Harvard University professor, Jorge I. Dominguez, PhD, served as the Antonio Madero Professor for the Study of Mexico for a dozen years. Emphasizing a research-based approach, Dr. Jorge Dominguez delved into the complex political and social factors that impact the United States’ southern neighbor.

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Mexico’s
Manufacturing
Receives Boost
from U.S.-China
Trade War
Jorge Dominguez

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Introduction
 A longstanding Harvard University professor, Jorge I.
Dominguez, PhD, served as the Antonio Madero Professor for
the Study of Mexico for a dozen years. Emphasizing a
research-based approach, Dr. Jorge Dominguez delved into
the complex political and social factors that impact the United
States’ southern neighbor.
A recent Bloomberg article drew attention to the unintended
positive consequence of the ongoing trade war waged by the
Trump administration on China in boosting Mexico’s economy.
In 2018, U.S. imports of Mexican goods notched their most
robust growth in seven years as they increased by 10 percent
to approximately $350 billion. With Chinese shipment growth
easing by a third, the U.S. trade deficit increased 15 percent
to $80 billion.

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Mexico Manufacturing
 An example given is the Chinese plastic utensils firm
Fuling Global, Inc., which also produces paper straws
and cups for many U.S. restaurants. With last year’s
tariffs hitting paper products, among $250 billion in
Chinese imports, Fuling shifted a portion of its
manufacturing base to a $4 million factory in Monterey,
Mexico, that is now commencing the shipment of
millions of paper straws to the U.S.
The bottom line is that trade is a complex and
interdependent activity. Despite a promise by
President Trump to reduce the trade deficit, it hit its
highest level ever, of $891 billion, due to a combination
of tax cuts spurring demand and retaliatory tariffs on
U.S. export products.