For First Time in Two Decades, U.S. Buys More From Mexico Than China
For First Time in Two Decades, U.S. Buys More From Mexico Than China
The United States bought more goods from Mexico than China in 2023 for the first time in 20 years, evidence of how much global trade patterns have shifted.
New data released on Wednesday showed that Mexico outpaced China for the first time in 20 years to become America’s top source of official imports — a significant shift that highlights how increased tensions between Washington and Beijing are altering trade flows.
The United States’ trade deficit with China narrowed significantly last year, with goods imports from the country dropping 20 percent to $427.2 billion, the data shows. American consumers and businesses turned to Mexico, Europe, South Korea, India, Canada and Vietnam for auto parts, shoes, toys and raw materials.
Mexican exports to the United States were roughly the same as in 2022, at $475.6 billion.
America’s total trade deficit in goods and services, which consists of exports minus imports, narrowed 18.7 percent. Overall U.S. exports to the world increased slightly in 2023 from the previous year, despite a strong dollar and a soft global economy.
U.S. imports fell annually as Americans bought less crude oil and chemicals and fewer consumer goods, including cellphones, clothes, camping gear, toys and furniture.
The recent weakness in imports, and drop-off in trade with China, has partly been a reflection of the pandemic. American consumers stuck at home during the pandemic snapped up Chinese-made laptops, toys, Covid tests, athleisure, furniture and home exercise equipment.