Due to escalating tensions between Washington and Beijing, Chinese exports to the United States have reached their lowest level in 20 years.

This may dissatisfy American clients, as the global trade environment no longer views low prices in isolation.

This year, Mexico surpassed China as the United States’ largest trading partner, eclipsing $263 billion in first-quarter commerce.

In the four months leading up to May, Chinese imports decreased by 25%, from $175 billion to $130 billion, while U.S. exports to China increased from $48,8 billion to $49.3 billion.

If companies abandon China’s low-cost production and supply networks, their costs would increase, which could have an impact on consumers.

As the United States transfers more production to the United States or nearby countries, prices for Chinese-made products may increase.

Few nations can compete with China’s cost-effectiveness, so Mexico’s rise may cost Americans more.