I think it’s corporate America belatedly deciding Xi Jinping is unreliable.Senior Fellow at the American Enterprise Institute Derek Scissors referring to new data showing the United States purchased more goods from Mexico than any other country in 2023.
Why It Matters: The U.S. Commerce Department released figures on Wednesday showing that the U.S.’ importing habits dramatically shifted last year. Compared to 2022, the value of U.S.-imported goods from Mexico increased 5%, while the value of imported goods from China decreased 20%. It is the first time since 2002 that the value of imported goods from Mexico surpassed the value of imports from China, indicating the economic ramifications of increasing tension between the U.S. and China and the impacts of the U.S. seeking to import from other countries closer and friendlier to itself.
Something To Consider: “There was a period where geopolitics didn’t really matter for trade much, but as uncertainty increases in the world, we do see that trade becomes more sensitive to these positions,” explained World Trade Organization research economist Stela Rubinova.
Read More: Mexico overtakes China as the leading source of goods imported by US (The Associated Press)
For First Time in Two Decades, U.S. Buys More From Mexico Than China (The New York Times)
by Emily Hooker, based in Texas