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