How China Uses Mexico To Avoid U.S. Tariffs

For the first time in more than two decades Mexico overtook China as the largest importer of goods to the U.S.

Mexican goods imported to the U.S. totaled $475 billion in 2023 about $20 billion higher than the previous year. Feuling that trend are simmering trade tensions between Beijing and Washington, an effort to bring U.S. imports closer to home and a burgeoning Mexican manufacturing base. But there’s another factor at play. To avoid American tariffs Chinese companies are using Mexico as a backdoor to the U.S. So how is China able to circumvent U.S. tariffs and what are logistic companies doing to prepare for the upcoming boom in Mexican trade. CNBC traveled to Mexico City and El Paso to find out.

Chapters:
0:00 - 3:05 Introduction
3:06 - 6:55 Chapter 1 Evading U.S. tariffs
6:56 - 10:51 Chapter 2 Mexico's manufacturing boom
10:52 - 13:55 Chapter 3 Policing the border
13:56 - 16:06 Chapter 4 Bringing goods to the U.S.
16:07 - 19:08 Chapter 5 Maersk, DHL and Uber Freight

Produced by: Shawn Baldwin
Edited by: Evan Lee Miller
Reporter: Lori Ann LaRocco
Animation: Christina Locopo, Jason Reginato
Supervising Producer: Jeniece Pettitt
Additional Camera: Andrew Evers, Clayton Conn
Additional Footage: Getty Images, Uber Freight

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How China Uses Mexico To Avoid U.S. Tariffs