China Exports via Mexico to Evade US Tariffs
(23 February 2024 – Mexico) China is exporting greater volumes of merchandise through Mexico to end markets in the US to avoid stringent tariffs imposed by the White House.
According to Container Trades Statistics analysed by Xeneta and Financial Times, the number of 20” containers shipped from China to Mexico reached 881,000 from Q1 2023 to Q3 2023, up from 689,000 year-on-year. Mexico recently surpassed China as the largest exporter of goods to the US in 2023 as truck shipments across the border into the US increase rapidly.
“Reducing reliance on China is an easy soundbite for politicians, but the reality is very different. A genuine realignment of global manufacturing would be a vast undertaking which will take many years and a colossal amount of investment and state intervention to achieve” commented Xeneta Chief Product and Data Officer, Erik Devetak.
“The Mexico story highlights the real paradox. The US wants to create alternative supply chains in partner countries . . . but what happens when it’s Chinese companies that are building those supply chains?” stated Center for Strategic and International Studies Senior Fellow, Ilaria Mazzocco.
Subscribe