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A trade deficit – also known as a negative balance of trade – is an economic term related to international trade. A trade deficit, in short, means that a nation’s imports exceed its exports. In other words, a country with a trade deficit spends more money in a year than it receives from its exports. Many nations around the world have trade deficits, including the United Kingdom, Mexico, Brazil, and the United States.
| China | $279.4 billion |
|---|---|
| Mexico | $152.3 billion |
| Vietnam | $104.6 billion |
| Germany | $83 billion |
| Japan | $71.1billion |
| Canada | $67.8 billion |
| Ireland | $65.3 billion |
| South Korea | $51.3 billion |
| Taiwan | $47.9 billion |
| Italy | $44 billion |
The United States has the largest trade deficit in the world. In 2023, the trade deficit of this nation was $773.4 billion. While the country brought in $3,826.9 billion in imports, the amount of exports was just $3,053.5 billion, (BEA, 2024). The largest exports of the United States were cars, food, and commercial aircraft. The largest imports were cell phones, oil, and cars.
The largest deficit in goods in the United States is with China. In fact, over one third of the trade deficit – or $279 billion – is because of imports from China. The main imports that the US purchased from China include clothing, machinery, and electronics.
The United States also has a significant trade deficit with Mexico. This deficit is smaller than that of China’s at $152 billion. The U.S. has imported $475 billion worth of goods from Mexico in 2023, including vehicles and auto parts.
The US has the third largest trade deficit with Vietnam at $104 billion. The primary categories of imported goods include machinery, mechanical appliances, textiles, and footwear.
A trade deficit of $83 billion with Germany is the fourth largest trade deficit of the U.S. In 2023, the U.S. imported almost $160 billion in auto parts and vehicles, medicine, and machinery.
The United States has a trade deficit of $71.2 billion with Japan. Vehicles and industrial supplies are among the primary imports that the U.S. acquires from Japan.
The U.S. also has a $68 billion trade deficit with Canada. While the U.S. exports vehicles, petroleum, and auto parts, it imports more crude oil and gas from Canada.
World Population Review for more