Trade tensions rise as U.S. accuses China of using Mexico as backdoor

As President Andrés Manuel “AMLO” López Obrador nears the end of his term, Mexico is emerging as the unlikely victor in the escalating geopolitical showdown between China and the U.S. For the first time in two decades, the U.S. purchased more goods from Mexico than from China, illustrating the effect of shifting global trade patterns in the Americas.

Mexico’s growth as a U.S. trading partner comes amid the global rewiring of supply chains following the pandemic and a steady reduction in U.S. dependence on Chinese goods. 

U.S. imports from China plunged by a whopping 20 percent last year as American consumers and businesses turned to other countries for auto parts, toys, electronic equipment, and raw materials such as oil.

But while Latin America’s second-largest economy has consistently gained ground as a critical supplier of its neighboring country, it has not come without tension. U.S. officials and businesses are warning that Mexico is a potential backdoor for Chinese goods into the U.S., benefiting from trade agreements between North American economies to circumvent existing tariffs. 

In fact, U.S. senators Sherrod Brown and Tom Cotton recently introduced bipartisan legislation in Congress to curb what they describe as a “dramatic increase” in steel being exported to the U.S. from Mexico, which comes with a floating suspicion that Chinese steelmakers may be circumventing restrictions by using the Spanish-speaking giant as a beachhead into the U.S. 

“Mexico’s violation of its 2019 agreement with the U.S. has released a surge of steel products into America that’s hurt our workers and made us less secure,” Mr. Cotton said....