The U.S. ended 2024 with the second-largest trade deficit on record — and China and Mexico were the countries that benefited most from sending goods to America. Canada? Not so much.

The agreement involves significant commitments from Mexico regarding border security, which played a crucial role in this decision.

President Donald Trump's tariff dispute with China, Canada and Mexico over fentanyl smuggling and illegal immigration has led to retaliation by the Chinese government.