[dennisw]

KC handling Chinese imports by way of Mexico .... you are correct. We sell to Mexico and vis versa? So what? We have a trade deficit with this 3rd world hole which is embarrassment. If you have your head screwed on right.

Mexico is the third largest U.S. export market, and that the vast majority of U.S. goods exports to Mexico are manufacturing/high tech/capital goods.

If we are selling them large quantities of such high value added items, how come we run a trade deficit with them? Our annual trade deficit with this 3rd world nation is roughly $40 billion

2004
America's trade deficit with Mexico of $3 billion in January was the lowest
since December 2002. The United States' trade gap with Canada widened in
January to $5.2 billion, up from $4.4 billion in December.

[1rudeboy]

If we are selling them large quantities of such high value added items, how come we run a trade deficit with them?

If you cannot answer that question yourself, then you should probably avoid "economics" lest you embarass yourself further.