The U.S. Bought More Goods from Mexico than China in 2023

Mexico surpassed China as the top source of imports for the United States in 2023, with Mexican exports reaching $475.6 billion, while Chinese exports fell by 20% to $427.2 billion. The trade relationship between the US and China is being affected by geopolitical tensions, with trade flows decoupling. Trade with China is declining for products with high tariffs, while it continues to increase for products without tariffs. Trade between China and the US is growing at a rate 30% slower than trade between both countries and the rest of the world.

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FAQ: The U.S. Bought More Goods from Mexico than China in 2023

1. Did the U.S. buy more goods from Mexico than from China in 2023?

Yes, according to SupplyChainBrain, Mexican exports to the U.S. in 2023 topped out at $475.6 billion, surpassing the amount the U.S. imported from China.

2. How much did U.S. imports from China fall by in 2023?

U.S. imports from China fell by 20% year-over-year to $427.2 billion in 2023.

3. Why are U.S. companies moving their supply chains from China to Mexico?

U.S. companies are moving their supply chains due to various factors, such as trade tariffs against China, the Chinese government's zero-Covid policies, and the geographical proximity of Mexico allowing for quicker and more efficient ground transport.

4. What is "friendshoring" and how is it related to the increase in Mexican exports to the U.S.?

Friendshoring refers to the practice of rerouting supply chains to countries that are perceived as politically and economically safer or lower-risk. This trend has coincided with an increase in Mexican exports to the U.S. as companies look to strengthen trade ties with more stable and geographically closer partners.

5. Is it cheaper to manufacture in Mexico than in China?

Manufacturing costs can vary, but in light of trade tariffs against China and other policies, some manufacturing companies in the U.S. and other international locations are finding it more cost-effective to manufacture in Mexico.

6. What is nearshoring and how has it affected U.S. imports from Mexico?

Nearshoring is the practice of moving production and related supply chain activities closer to the U.S. This has positively affected U.S.-Mexico trade, as companies seek to reduce risks associated with long-distance supply chains and increase agility in their operations.

7. Has Mexico surpassed China as the U.S.'s top source of imports before 2023?

No, Mexico surpassed China as the U.S.'s top source of imports for the first time in 20 years in 2023.

8. What are the top U.S. imports from Mexico as of 2023?

While the specific top U.S. imports from Mexico as of 2023 are not detailed in the provided information, recently released data for February 2023 finds that Vietnam and Mexico are the two countries with increasing shares of U.S. imports, with China's share declining.