Mexico has surpassed China to become the biggest exporter of goods to the US in 2023, according to data released Wednesday, reports Nikkei Asia. The US imported a total of $427.2 billion from China last year, a roughly 20% decrease from the year before, according to the Bureau of Economic Analysis, a US government agency. Meanwhile, Mexico exported $475.6 billion to the US, up 5% from 2022.
This is the first time in 20 years that Mexico became the leading source of goods imported by the US.
American companies have been diversifying supply chains due to unstable US-China relations. The Biden administration has been encouraging this trend, calling it “friendshoring” to mitigate geopolitical risks. Friendshoring means building up supply chains among like-minded countries and reducing dependence on geopolitical rivals.