Mexico Surpasses China as Top US Trading Partner in Shift of Global Dynamics

Trade & Border IssuesHot Spots
Written By Jennifer Joslyn
The United States and Mexico on a m ap.

Photo by Lara Jameson

Mexico has replaced China as the United States' primary trading partner, marking a significant change in the global economy. This shift reflects a move away from prioritizing low prices and efficiency to a more nuanced approach that considers national security, climate policy, and supply-chain resiliency. The decline in trade with China has led to rising costs for US consumers and companies and underscores deteriorating diplomatic relations between the two countries. The balanced trade relationship between the US and Mexico, particularly in the manufacturing sector, highlights their complementary roles. While the Biden administration aims to improve relations with China, trade dynamics have shifted in favor of Mexico due to factors such as nearshoring and the United States-Mexico-Canada Agreement (USMCA) that promotes freer trade between the two countries.

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Jennifer Joslyn
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