Kalach: Balancing U.S.-Mexico Trade Amidst Shifting Ties with China
As American companies seek to limit their exposure to the pitfalls of making goods in China, some are moving production to Mexico. This shift has bolstered trade between both nations, reaching a remarkable $462 billion in the first half of this year and crowning Mexico as America’s top trading partner. Chinese companies are also investing in Mexico, capitalizing on an extensive North American Free Trade Agreement, now known as the U.S.-Mexico-Canada Agreement (USMCA). Following in the footsteps of Japanese and South Korean firms, Chinese companies are establishing manufacturing facilities in Mexico, enabling them to designate their products as “made in Mexico” before shipping them into the U.S. without import duties.