@philippilk Ridiculous and uninformed. Correlation is not causation? How about those y-axis crimes? How does this translate into re-exportation? Country of origin rules under USMCA are extremely strict, and quite enforced. Do better.

@smirallesacuna I'm afraid you'll have to take it up with @CapEconomics , @smirallesacuna as they did the data. I would say basically everyone is starting to realise what is going on here. Arbitrage is taught in undergraduate economics courses, no?

@philippilk This is what happens in the International trade

@philippilk Looks a lot like what is happening with Europe and Russian oil/gas.

@philippilk @ektrit

@philippilk we call this in China "kill 1000 enemy but loss 1200 of our own soldiers"

@philippilk imagine what 60% tariffs would do

@philippilk Need to set up one of these middlemen gigs

@philippilk Middlemen are in Mexico and ASEAN, so that is good actually

@philippilk This isn't proof of "re-exporting" - it could also be explained by the US finding different importers and China finding different export markets.

@philippilk There was this expectation that the US would relocate factories from China to Mexico but that has not happened since the US is in stagflation and companies like Tesla have cancelled plans to build factories in Mexico because american companies are loosing mkt share to China.

@philippilk Not necessarily, though there it makes no accounting difference whether or not re-exporting occurs.

@philippilk

@philippilk ASEAN not complaining.

@philippilk good, hope it means mexico and asean develops

@philippilk also explains why mexican peso has been stronger than dollar while every other currency has been falling

@philippilk At the same time, Mexico becomes more dependent on China while the US remains just as dependent as before.