Trade balances have become a hot topic in Washington in recent months, and the Trump administration has made clear its objective to rebalance US trade to limit imports and boost domestic production. But are all trade deficits equal?

This infographic reflects on trade balances in the broader context of supply chain interdependence. Research shows that Mexico is deeply reliant on US intermediate goods, which means that it imports US inputs that go into more finalized products that are then exported through the USMCA back to the United States. This places Mexico, in particular, in a separate category from all other major US trade partners.

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