According to the US Census Bureau, Mexico surpassed China as the biggest US trading partner in goods in 2022. The total value of US-Mexico trade in goods was $621.8 billion, up from $594.6 billion in 2021. US-China trade in goods was $606.7 billion in 2022, down from $680.8 billion in 2021.
There are a few reasons why Mexico surpassed China as the biggest US trading partner. One reason is the ongoing trade war between the US and China. The tariffs imposed by the Trump administration on Chinese goods have made it more expensive for US businesses to import from China. This has led some businesses to shift their sourcing to Mexico, where there are no tariffs on US goods.
Another reason for the shift in trade is the USMCA, the new trade agreement between the US, Mexico, and Canada. The USMCA has lowered tariffs on many goods traded between the three countries, making it more attractive for businesses to do trade with Mexico.
Finally, the strong economic growth in Mexico has also contributed to the increase in trade. Mexico’s economy grew by 5.8% in 2021, the fastest pace in 18 years. This has led to increased demand for US goods and services in Mexico.
The shift in trade from China to Mexico is likely to continue in the coming years. The trade war between the US and China is unlikely to be resolved anytime soon, and the USMCA is expected to boost trade between the US and Mexico.