Doing business overseas has become increasingly more expensive.

Due to the rising costs, experts believe that Mexico has now overtaken China to become the top manufacturer for American companies.

At the beginning of 2023, Mexico became the top U.S. trading partner with bilateral trade between the two countries totaling $263 billion during the first four months of this year, according to a report from the Federal Reserve Bank of Dallas.

“Mexico’s emergence followed fractious U.S. relations with China, which had moved past Canada to claim the top trading spot in 2014,” said the Federal Reserve Bank of Dallas.