Mexico Poised to Replace China as Top US Trade Partner After 17 Years Amid Souring Relations
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China is set to lose its top spot as the number one exporter to the US after 17 years, with Mexico positioned to take over the top spot. This is driven by escalating US-China trade tensions and supply chain restructuring.
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There has been a major decline of over 20% in US imports from China from January-November 2022. China's share of total US imports has plunged to 13.9%, the lowest since 2004.
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Mexico has seen a surge in exports to the US, reaching record levels in 2023 and accounting for over 15% of total US imports in the first 11 months of the year. The EU has also seen significant export growth.
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The shifts align with the Biden administration's "friendshoring" policy to diversify supply chains towards allied nations and the retention of $370 billion in Trump-era tariffs.
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Chinese companies are setting up operations in Mexico to bypass US sanctions, fundamentally altering regional trade dynamics. Mexico is emerging as a winner of the US-China trade war.