The Blubber

The US now has more imports from Mexico than China, for the first time since 2003.

This reversal of a longstanding trend occurs in the context of heightened economic tensions between the United States and China, coinciding with an escalation of geopolitical conflicts.

Amid these rising tensions, American companies have responded swiftly by diversifying their supply chains and expanding their production capabilities beyond China to other countries. For instance, during the summer, computer manufacturer HP announced its intention to relocate the production of millions of laptops from China to Thailand and Mexico.

Even Apple, predominantly reliant on China for its product manufacturing, has initiated steps to diversify its supply chain, spreading production across several Asian nations.

Furthermore, the increased share of US imports coming from Mexico can be attributed, in part, to American automotive companies that have progressively shifted their production operations to Mexico over the past decade. Notable names such as Ford, General Motors, Chrysler, Kia Motors, Volkswagen, Nissan, and Mercedes-Benz are among the car manufacturers that have established manufacturing facilities in Mexico.