Chinese exporters are increasingly shipping goods to the US via Mexico to bypass US tariffs imposed since 2018.

Axar.az, citing FT, reports that container traffic from China to Mexico rose to 881,000 in the first three quarters of 2023, up from 689,000 in the same period of 2022.

Mexico has now surpassed China as the US’s top exporter, aided by rising truck shipments. While direct Chinese exports to the US have dropped below 15% of total US imports, Chinese goods continue entering the US indirectly.

Chinese firms, especially automakers, benefit significantly. In 2023, 33 Chinese-owned auto parts companies in Mexico exported $1.1 billion in parts to the US. Mexican-assembled cars face a 2.5% US tariff, while direct imports from China face up to 25%.

The Biden administration, maintaining Trump-era tariffs, faces growing pressure from unions and lawmakers to tighten trade rules. Mexico has responded with new tariffs on Chinese goods and signed an investment screening deal with the US, but enforcement remains uncertain. Experts warn that China’s integration into global supply chains, including through partners like Mexico and Vietnam, will be difficult to unwind.

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