The decline in imports from China was especially big, according to final 2023 figures from the Bureau of Economic Analysis, a US$109.1-billion decline to US$427.2 billion. U.S. exports to China also decreased slightly. The United States also posted small declines in two-way trade with Canada, though imports from north of the border still exceeded exports by US$67.9 billion. (The Logic)

Talking point: Part of the decline in U.S. imports from China is just normalization after consumers loaded up on Chinese-made goods during the COVID-19 pandemic. But some reflects a real separation of the American economy from China’s thanks to tariffs imposed under Donald Trump and maintained by Joe Biden amid years of tensions between Washington and Beijing. Mexico is one of the beneficiaries: the U.S. trade deficit with Mexico grew to US$152.4 billion in 2023, the BEA reported, driven by an increase in imports of US$20.8 billion. It’s the first time in two decades the U.S. has imported more from Mexico than China.