Texas at Heart of US-Mexico Economic Engine as Trade Shifts Towards AI
Dallas Fed Economist Highlights Texas-Mexico Trade Dynamism and AI Manufacturing Expansion
The Federal Reserve Bank of Dallas economist Roberto A. Coronado emphasized that Texas is at the heart of the U.S.-Mexico economic engine, with trade policies shifting towards artificial intelligence expansion and industrial transitions along the Rio Grande.
Texas accounts for more than 64% of total U.S.-Mexico border region trade, making it the nation's premier exporting hub. In 2025, roughly 28% of Texas exports, valued at $125 billion, went to Mexico, with three-fourths of all land trade along the entire U.S.-Mexico border crossing through Texas ports.
The Paso del Norte region is undergoing a structural transformation, pivoting towards high-value, advanced manufacturing, including automation and artificial intelligence hardware. Coronado highlighted that Mexico accounts for one-fourth of products related to artificial intelligence, with Juárez increasingly attracting firms building data center servers under USMCA frameworks.