Tariffs on China Reshape U.S. Trade as Imports Rise --- Mexico has supplanted China as the main source of goods, but imports keep climbing

"China is no longer the main source for U.S. imports. Mexico took its place last year.

That seismic shift started in 2018 after President Trump signed into law a round of tariffs on many Chinese imports during his first term. And he has promised to impose another round of tariffs after he returns to the White House in January.

Tariffs haven't slowed America's demand for foreign goods. Many items just find new ways into the country. U.S. imports of goods reached $3.1 trillion in 2023, up from $2.3 trillion in 2017, according to an analysis of Census Bureau international trade data.

Semiconductors, leather bags and laptops were among the top China imports that were most affected by the tariffs. Last year, the value of those Chinese imports was on average 35% less than in 2017.

Companies big and small have moved production from China to other manufacturing hubs such as Mexico, Vietnam, Taiwan and Malaysia.

Last year, products coming from China made up 14% of all imported goods, the lowest share in nearly two decades. 

However, many of the goods arriving from factories in Mexico and Vietnam still include components that originate in China.

In 2023, smartphones valued at billions of dollars were brought to the U.S. from India, South Korea and Vietnam, a 42% rise from six years earlier. The value of laptops and tablets imported from Vietnam and Taiwan rose, as well as memory chips used for videogames or mining cryptocurrencies.

Tariffs have altered trade in kitchen cabinets. About $1.3 billion of such cabinets were shipped from China in 2017. That plunged to $26 million last year, even as the overall amount of wooden cabinets imported continued to climb. They now mostly come from Vietnam.

Companies importing toys, sports equipment and videogame consoles appear to have stuck with their China suppliers with deep supply chain advantages. Imports of those goods from China reached $32 billion in 2023, a 24% increase from 2017.

A few products -- including lithium-ion batteries and videogame consoles -- had a surge in imports since 2017. More than 70% of those imported goods were still sourced from China in 2023." [1]

1.  U.S. News: Tariffs on China Reshape U.S. Trade as Imports Rise --- Mexico has supplanted China as the main source of goods, but imports keep climbing. Pacheco, Inti.  Wall Street Journal, Eastern edition; New York, N.Y.. 25 Nov 2024: A.2.