In 2023, Mexico surpassed China as the United States’ top source of imported goods for the first time in over two decades.
The shift reflects strained U.S.-China relations, with the U.S. seeking to import from friendlier countries and closer to home.
The value of goods imported from Mexico rose nearly 5% to over $475 billion, while Chinese imports fell 20% to $427 billion.
“The negotiation is proposing closing the border,” Mexican President Andrés Manuel López Obrador said.
“Do you think Americans, or Mexicans, but especially the Americans, would approve that? The businesses wouldn’t take it, maybe one day, but not a week.”
The U.S.-China economic tensions, ongoing trade disputes, and concerns over Beijing’s economic policies have contributed to the shift.
Some industries — especially auto manufacturers — have set up plants on both sides of the border that depend on each for a steady supply of parts.
“I don’t see the U.S. being comfortable with a rebound in those areas in 2024 and 2025,” American Enterprise Institute’s Derek Scissors said.
“I think it’s corporate America belatedly deciding Xi Jinping is unreliable,” he said.
The Biden administration’s encouragement of “friend-shoring” and “reshoring” has also impacted the trade landscape.
The U.S.-Mexico-Canada Trade Agreement has influenced trade dynamics, with some Chinese manufacturers establishing factories in Mexico to benefit from duty-free trade.
This shift has implications for supply chains, trade relations, and geopolitical dynamics in North America.
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