Chilly relations with Beijing mean Mexico now exports more than China to the U.S. for the first time in over 20 years
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Mexico has surpassed China as the leading source of goods imported by the United States for the first time in over 20 years. The value of goods imported by the United States from Mexico rose nearly 5% from 2022 to 2023, reaching over $475 billion, while the value of Chinese imports dropped 20% to $427 billion. The last time Mexico's imports exceeded China's imports was in 2002. The shift reflects growing tensions between the US and China, as well as US efforts to import from countries that are friendlier and closer to home. The Trump administration imposed tariffs on Chinese imports in 2018, and President Joe Biden retained those tariffs after taking office in 2021. The Biden administration has encouraged companies to seek suppliers in allied countries or to reshore manufacturing to the US. Some Chinese manufacturers have established factories in Mexico to take advantage of the US-Mexico-Canada Trade Agreement. Overall, the US trade deficit in goods with the rest of the world narrowed 10% in 2023 to $1.06 trillion.

#Us-mexicoTrade #Us-chinaTrade #Tariffs #Imports #Manufacturing #SupplyChain

https://fortune.com/2024/02/08/chilly-relations-beijing-mexico-exports-more-china-us-first-time-20-years/