China, once America’s largest trading partner, is losing that seat.
The year 2022 saw China step aside as top U.S. trade partner the first time since the trade war in 2019.
According to import data from the Commerce Department, U.S. purchases from China have dropped below sales from the European Union.
The main reasons that drove the change include Beijing’s harsh zero-COVID-19 policy and Washington’s choice to broaden supply chains, especially with other Asian countries.
Data from 2022 revealed that Washington’s bilateral goods trade with China reached $690 billion, marking a new record, indicating that economic decoupling from China hasn’t yet fallen into place.
U.S. trade with the rest of the world also hit all-time highs last year thanks to a strong dollar and rising domestic demand.