In the first, Mexico exceeded China last year as the leading source of goods imported to the United States.
U.S. Commerce Department released the figures where the value of goods imported to the US from Mexico increased 5% from 2022 to 2023, to more than $475 billion. The value of Chinese imports falls 20% to $427 billion.
2022 was the last time when Mexican goods imported to the US exceeded the value of China’s imports.
In recent years, the economic relations between China and the United States have got worse. The reason behind this is that Beijing has confronted trade and made unfavourable military gestures in the Far East.
In 2018, the Donald Trump administration started imposing tariffs on Chinese imports and believed that Beijing’s trade practices breached global trade rules.
US President Joe Biden maintained those tariffs after taking office in 2021, making that enmity toward China will be an area of common ground for Republicans and Democrats.
The Biden administration has encouraged companies to seek suppliers in allied nations or to return manufacturing to the United States as an alternative to offshoring production to China. United State companies look for supplies closer to the US due to supply-chain disruptions related to the COVID-19 pandemic.
Some of the Chinese manufacturers have set up factories in Mexico to exploit the benefits of the 3-year-old U.S.-Mexico-Canada Trade Agreement as it allows for duty-free trade in North America for numerous products.
The United States shortfall in the trade of goods with the rest of the world. The space between the value of what the US sells and what it buys abroad- narrowed 10% last year to $1.06 trillion.
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