The United States is the major trading partner for many Asian nations. Countries like China, Japan, Vietnam, India, and South Korea are among the top trading partners for the U.S. in Asia. The U.S. trades billions of dollars in goods and services with these countries every year.
Recently, the U.S. placed reciprocal tariffs on several Asian countries such as China, Taiwan, India, and Japan, among others. The U.S. claimed these countries had high tariffs on American goods, which makes trade unfair. However, when we look at actual data from the World Trade Organization (WTO), the numbers tell a different story. For example, the U.S. claimed China charged a 67% tariff on American exports. But according to the CATO Institute, the Actual average tariff rate (trade-weighted, WTO) is closer to 3%. That’s a big difference of 64 percentage points.
Key Takeaways
- Countries like China and Vietnam are accused of imposing high tariffs on U.S. exports, but WTO based actual rates are very low.
- The U.S. runs big deficits with Asian countries. In 2024, six of the ten countries with which the U.S. had the largest trade deficits were in Asia.
U.S. Tariff Data with Key Asian Countries
The following table shows the US tariff data with key Asian countries.
| Country | Tariff Rate on US Exports (Alleged) | Actual Average Tariff Rate (WTO) | Difference | USA Discounted Reciprocal Tariffs |
|---|---|---|---|---|
| 🇨🇳 China | 67% | 3.0% | 64.0% | 34% |
| 🇻🇳 Vietnam | 90% | 5.1% | 84.9% | 46% |
| 🇹🇼 Taiwan | 64% | 1.7% | 62.3% | 32% |
| 🇯🇵 Japan | 46% | 1.9% | 44.1% | 24% |
| 🇰🇷 South Korea | 50% | 8.4% | 41.6% | 25% |
| 🇮🇳 India | 52% | 12.0% | 40.0% | 26% |
| 🇲🇾 Malaysia | 47% | 3.3% | 43.7% | 24% |
| 🇮🇩 Indonesia | 64% | 5.3% | 58.7% | 32% |
| 🇹🇭 Thailand | 72% | 6.3% | 65.7% | 36% |
| 🇵🇰 Pakistan | 58% | 7.6% | 50.4% | 29% |
The data is sourced from the CATO Institute, US Census Bureau, The White House.
U.S. Tariff Rates & Trade Deficits With Major Asian Countries
The U.S. has its biggest trade deficits with some of its main Asian trading partners. China is the biggest trading partner of the U.S. in Asia and also the country with which the U.S. has the largest trade deficit globally. Additionally, the U.S. also has large trade deficits with Vietnam, Taiwan, Japan, and South Korea. Reciprocal tariffs are part of the U.S. strategy to reduce its trade deficits with these countries.
🇨🇳 China
China is the U.S.’s largest trading partner in Asia and its biggest source of trade deficit. In 2024, the U.S. faced an approximately $295 billion trade deficit with China, according to the US Census Bureau. According to the CATO Institute, China’s actual average tariff on U.S. goods is just 3%, compared to the alleged 67%.
🇻🇳 Vietnam
Vietnam has become a major manufacturing hub and a growing U.S. trade partner in Asia. The U.S. also recorded some of its highest trade deficits with Vietnam in 2024 at $123 billion. It is currently the third-largest source of the U.S. trade deficit globally.
While the U.S. claims that Vietnam imposes a 90% tariff on American exports, data from the CATO Institute shows the actual average tariff is only 5.1%. There is a vast difference between the tariff rate calculated by the United States and the CATO Institute based on WTO data.
Top 10 Countries the U.S. Had the Largest Trade Deficits in 2024
🇹🇼 Taiwan
Taiwan is a tech-heavy trading partner of the U.S., especially in semiconductors. In 2024, the US recorded its sixth largest trade deficit with Taiwan at approximately $74 billion. According to the United States, Taiwan imposes high protective tariffs on US exports at 64%; however, the WTO data reveals that the actual tariff is just 1.7%.
🇯🇵 Japan
Japan remains a key U.S. trade partner in Asia. The U.S. also faced its seventh highest trade deficit with Japan in 2024 at $68 billion. Unlike the other Asian countries, there is a much higher gap between the alleged Japanese tariffs on US exports and the actual tariff according to the CATO Institute. The U.S. administration alleged that Japan imposes a 46% tariff rate on U.S. exports, but WTO data shows it to be only 1.9%.
🇰🇷 South Korea
The U.S. and South Korea have a Free Trade Agreement (KORUS), which has helped ease many trade barriers. In 2024, the U.S. reported its eighth-largest trade deficit with South Korea, totaling about $66 billion, according to the U.S. Census Bureau. The U.S. claims South Korea puts a 50% tariff on American exports, but the CATO Institute, using WTO data, shows the actual average tariff is much lower.
India, Malaysia, Indonesia, Thailand, and Pakistan are also key trading partners of the US in Asia. These countries are also met with reciprocal tariffs by the United States.
Conclusion
The comparison between the U.S. alleged and WTO actual tariff rates reveals a significant gap between the two rates. According to the CATO calculation, most Asian countries, especially China, Vietnam, Japan, and Taiwan, maintain relatively low average tariffs on U.S. exports. Yet, the U.S. continues to run large trade deficits with these countries.
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