Daily Management Review

US increased imports from Mexico amid falling shipments from China


US imports from China in August fell 12.5% year on year. At the same time, purchases from Mexico - the second largest supplier of goods to the United States - showed the largest growth, according to Bloomberg.

China remains the main source of US imports, but its gap with Mexico is narrowing. Imports from China in August fell by $ 43.25 billion in annual terms, while purchases from Mexico grew by 5.5%, or by $ 12.4 billion.

Meanwhile, imports from Vietnam jumped by 34%, or by $ 10.9 billion. As a result, the country moved from 12th to 7th place in the list of major US suppliers.

The trade war between the United States and China has been going on for more than a year. During this time, the parties introduced mutual duties worth hundreds of billions of dollars.

The conflict between the two largest economies in the world provokes a change in supply chains, redirecting trade flows, investments and forcing many companies to shift production from China to avoid high duties.

The economies that benefit most from the trade war are mainly located in Asia, most notably in Vietnam, Taiwan and Thailand.

Nevertheless, the overall growth of Vietnamese exports this year may slow down to 7-7.5% compared to 2018, mainly due to growing tensions in world trade, the Hai Quan newspaper reported with reference to the Ministry of Industry and Trade of Vietnam.

The United States tightens rhetoric against Vietnam, one of its main trading partners, which benefits from a trade war between Washington and Beijing.

US President Donald Trump previously accused Vietnam of abusing trade relations with America.

Vietnam's trade surplus with the United States last year amounted to $ 39.5 billion, peaking over the observation period since 1990.

source: bloomberg.com