The escalating trade conflict between the U.S. and China has triggered a significant shift in global trade dynamics. According to a report by logistics intelligence firm Vesselbot, container imports from China to Mexico have seen a substantial increase. The data reveals a 61% surge in twenty-foot-equivalent (TEU) container volumes from China into Mexico in the first half of 2024, on top of a 64% year-on-year increase in January.
Mexico: A Potential Alternative Route for Chinese Goods?
This sharp uptick has raised concerns that Mexico might be serving as an alternative route for Chinese goods to enter the U.S., thereby bypassing the high tariffs imposed due to the ongoing trade conflict. The U.S. has maintained and even expanded the tariffs on Chinese goods initiated under the Trump administration, including new tariffs on electric vehicles, semiconductors, batteries, ship-to-shore cranes, and medical products.
Record-Breaking Container Volumes at Mexican Ports
Vesselbot’s data indicates that Mexico’s Manzanillo Ensenada and Lazara Cardenas ports, which handle a significant portion of the country’s imports from China, have experienced record-breaking container volumes. Between January and June 2024, TEU import volumes from China at Manzanillo increased by 40%, while Lazaro Cardenas saw a staggering 200% increase. Concurrently, there was a notable 18% drop in containerized exports from China to the U.S. between January and February.
U.S. Attempts to Close Loophole
In an attempt to close this loophole, the U.S. imposed 10-25% tariffs on Mexican-imported steel and aluminum that was melted or poured in another country in July. However, these levies did not cover other Chinese products being routed through Mexico, which would otherwise be subjected to tariffs if imported directly from China into the U.S.
