The US is now buying more from Mexico than China for the first time in 20 years

New data released Wednesday by the Commerce Department showed that in 2023, Mexico was the leading source of goods imported to the US — ahead of China for the first time in over 20 years.

Mexico surpassing China as America's top trade partner signals a significant shift in global commerce dynamics. As tensions between the US and China persist, fueled by trade disputes and tariffs, this transition to Mexico helps reduce costs and speed up the supply chain, ultimately lowering the costs of goods in the US.

Between 2022 and 2023, the value of goods imported to the US from Mexico increased by almost 5%, up to over $475 billion, according to the Commerce Department. Chinese imports fell 20% in the same time period, to $427.2 billion, just slightly above Canada.

Additionally, the value of Chinese imports remained above the value of Mexican imports from 2002 until this most recent data.