For the first time in over 20 years, Mexico has surpassed China as the top supplier of goods to the United States, with U.S. imports from Mexico exceeding $475 billion in 2023. This shift is attributed to the U.S.'s efforts to reduce dependency on Chinese goods amid escalating tensions and to source more from closer, allied nations. The U.S. has maintained tariffs on Chinese imports, and the Biden administration encourages 'friend-shoring' and 'reshoring' of manufacturing. Some Chinese manufacturers have moved to Mexico to benefit from the U.S.-Mexico-Canada Trade Agreement. Meanwhile, China is reducing its reliance on U.S. imports, especially in the tech sector, by increasing its chipmaking capabilities.