Washington: As a result of their ongoing trade, China is no longer the top trading partner of the United States and has been replaced by America's neighbours Mexico and Canada, according to a media report.

In the first half of the year, Mexico was the top trading partner of the United States followed by Canada, the latest official data reveals, according to The Wall Street Journal.

As a result of the ongoing trade war between the US and China, imports from China to the US dropped by 12 per cent and America's export to China fell by 19 per cent, the daily said. 

After coming to power, Trump has imposed 25 per cent import tariff on chinese products worth USD 250 billion. Another 10 per cent tarrif on products worth USD 300 billion will come into effect on September 1. 

Trump has so far maintained that China has been unfair to the US. China has also taken several retaliatory steps. 

According to a Commerce Department report, the total value of bilateral goods exchanged with China fell 14 per cent in the first half of the year to USD 271.04 billion, The Wall Street Journal said. ` 

"After holding the top spot among US trading partners from 2015 to 2018, China now sits at No. 3 and now smaller than Mexico for the first time since 2005," it said.

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Dubai: Smoke was seen rising from an area near the United States Consulate in Dubai, according to witness accounts cited by Reuters.

There was no immediate official confirmation on the extent of damage or whether there were any casualties in the incident.

Earlier, the US embassy in Riyadh, Saudi Arabia’s capital, was also attacked. Authorities reported damage to the premises, but no casualties were recorded.

The developments come amid heightened tensions in the region, with Iran continuing to target US interests in the Middle East following deadly attacks launched on Saturday by Israel and the United States.