US Imports More from Mexico than China for the First Time in Decades
Recent data from the US Census Bureau has unveiled a significant milestone in global trade patterns: for the first time in over two decades, imports from Mexico to the United States have exceeded those from China. This shift underscores evolving dynamics in international commerce, driven in part by escalating tensions between the US and China.
According to the Census Bureau's findings, the US trade deficit with China notably declined, with imports from China plunging by 20% to $427.2 billion last year. Concurrently, American consumers and businesses diversified their import sources, turning to countries such as Canada, various European nations, and across Asia for goods ranging from auto parts to raw materials. In contrast, imports from Mexico to the US reached $475.6 billion, maintaining levels similar to the previous year.
While the overall US trade deficit contracted by 18.7% in 2023, exports to global markets witnessed an uptick. However, this expansion was tempered by reduced purchases of commodities like crude oil and cellphones, contributing to the decline in imports.
January data from the Census Bureau further illuminated the trend, revealing a more than 21% drop in US imports from China from January to November 2023 compared to the corresponding period in the previous year. Meanwhile, imports from Mexico during the same timeframe experienced nearly a 5% increase.
Additionally, the Census Bureau highlighted that Chinese imports accounted for 13.9% of the US's total imports from January to November 2023, marking the lowest share since 2004. In contrast, Mexico's share of total US imports surged to a record high of 15.5%.
