Mexico replaces China as America's top trading partner

China has lost its position as the top trading partner of the United States

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China has lost its position as the top trading partner of the United States. As a result of the ongoing trade stand off between the US and China, America's neighbours Mexico and Canada have pushed China to third place. 

Surpassing Canada and China, Mexico is now the biggest trading partner of the United States. Cross-border goods traffic between Mexico and the USA is on the rise after multinationals have established integrated manufacturing system in the free-trade zone.

Owing to restrictions and tariffs imposed by Washington and Beijing on each other, imports from China to the US fell by 12 per cent and US exports to China fell by 19 per cent.

US President Donald Trump has imposed 25 per cent import tariff on Chinese products worth USD 250 billion. Another 10 per cent tarrif on products worth USD 300 billion will come into effect on September 1.

Trump has so far maintained that China has been unfair to the US. China has also taken several retaliatory steps.

Trump said on Thursday that his administration will not allow Huawei, the Chinese technology giant, inside the country as it is related to the national security. "We're not allowing Huawei into our country. We have not changed on that," Trump said responding to a question.

According to a Commerce Department report, the total value of bilateral goods exchanged with China fell 14 per cent in the first half of the year to USD 271.04 billion, The Wall Street Journal said. `

"After holding the top spot among US trading partners from 2015 to 2018, China now sits at No. 3 and now smaller than Mexico for the first time since 2005," it said.

In one year, India’s trade surplus with the US also declined from $21.2 billion to $16.8 billion.  

(With PTI inputs)

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