Imports from China during the first quarter of 2026 fell 40.7% compared to the same period a year earlier, according to data from the Census Bureau cited in a report by Investopedia. The decline reflects a broader shift in supply chains away from what was once America’s largest trading partner.

Read also: China Signals Acceptance of Limited US Tariff Hike Within Agreed Levels

China has dropped to become the fourth-largest exporter to the United States, trailing Mexico, Canada, and Taiwan. Manufacturers have relocated operations to avoid steep tariffs on Chinese goods. In the first quarter, the U.S. purchased more than twice the volume of products from Mexico than it did from China.

The Census Bureau reported that the U.S. imported $60.87 billion worth of goods from China through March of 2026, down from $102.66 billion over the same period in 2025. President Donald Trump’s tariffs on China were designed to use import taxes to lure manufacturing back to American shores, at one point targeting a 164% tariff on what was then America’s largest trading partner.

Although tariffs on China have been lowered since the Supreme Court struck down many of Trump’s import taxes in February, the drop in Chinese imports has not yet produced the industrial renaissance in the U.S. that the tariffs were intended to achieve. The manufacturing sector has consistently lost jobs since the tariffs were implemented. The trade deficit also remains, standing at $60 billion in March, compared with $66 billion in March 2024.

The disruption has come at a cost borne by U.S. consumers. Prices for core goods—excluding food and energy—rose 2.8% over the year in April, according to the Bureau of Labor Statistics, pushing overall inflation well above the Federal Reserve’s 2% annual target. The increase is notable because core goods prices typically remained flat or declined in pre-pandemic times.

Source: IndexBox Market Intelligence Platform