Trade between the U.S. and Asia has grown to billions of dollars annually. However, the US continues to face the high trade deficit with major Asian countries. China, Vietnam, and Taiwan are the top countries that account for the largest U.S. trade deficits in Asia.
According to the US Census Bureau, the U.S. trade deficit with China reached approximately $295 billion in 2024, making it the largest among Asian countries. The collective U.S. trade deficit with the top five Asian trading partners reached approximately $627.3 billion. These countries account for a major portion of U.S. imports, primarily in electronics, machinery, automobiles, and consumer goods. Meanwhile, U.S. exports to these nations remain significantly lower. Additionally, the U.S. recorded a total trade deficit of approximately $1.2 trillion in goods in 2024.
Key Takeaways
- U.S. has the largest trade deficit with China at over $295 billion, followed by Vietnam and Taiwan.
- The U.S. trade deficit with its top five Asian trading partners totaled about $627.3 billion in 2024.
U.S. Trade Deficit with Major Asian Economies
The following table provides a detailed overview of the U.S. trade deficit with major Asian economies in 2024. It includes data on exports, imports, and the trade balance for each country.
| Country | Exports (Million $) | Imports (Million $) | Balance (Million $) |
|---|---|---|---|
| 🇨🇳 China | 143545.7 | 438947.4 | -295401.6 |
| 🇻🇳 Vietnam | 13098.2 | 136561.2 | -123463 |
| 🇹🇼 Taiwan | 42336.9 | 116264 | -73927.2 |
| 🇯🇵 Japan | 79740.8 | 148208.6 | -68467.7 |
| 🇰🇷 South Korea | 65541.8 | 131549.2 | -66007.4 |
| 🇮🇳 India | 41752.7 | 87416.4 | -45663.8 |
| 🇹🇭 Thailand | 17719.2 | 63328.2 | -45608.9 |
| 🇲🇾 Malaysia | 27704.8 | 52534.8 | -24830.1 |
| 🇮🇩 Indonesia | 10202.1 | 28084.7 | -17882.6 |
| 🇧🇩 Bangladesh | 2214 | 8365.8 | -6151.8 |
The data is sourced from the United States Census Bureau.
In 2024, the U.S. trade deficit in goods with its 10 major Asian trading partners totaled approximately $743 billion. The U.S. faced major trade deficits with China, Vietnam, Taiwan, Japan, and South Korea. Overall, the United States recorded an approximately $1.2 trillion trade deficit in 2024.
US Trade Deficit With China
China is the largest trade partner of the U.S. in Asia. The United States faced the largest trade deficit of $295.4 billion with China. Additionally, the US has recorded an approximately $1.6 trillion trade deficit with China in the last five years.
To address the burgeoning trade deficit, the U.S. has engaged in a trade war with China since 2018. This involves putting high tariffs on Chinese goods to encourage more American production and reduce dependence on Chinese imports. However, the US deficit with China remained high despite the trade war and other measures. In his second term, Trump has already imposed an additional 10% tariff on Chinese products to reinvigorate the trade war. The US also threatened to put 25% tariffs on China and Mexico, which are also the largest trading partners of the US.
The U.S. aims to impose new tariffs on China and other trading partners to reduce its trade deficit. However, experts warn that this could lead to inflation in the United States as tariffs increase prices of the imported goods.
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US Trade Deficit with Vietnam
Vietnam has become a major trade partner of the U.S. in recent years. After China, the US has the second-largest trade deficit with Vietnam of approximately $123 billion. The United States mainly imports electronics, textiles, and machinery from Vietnam. Despite the high trade deficit, economic ties between the two countries continue to grow due to Vietnam’s involvement in regional trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
US Trade Deficit with Taiwan
Taiwan is another important trading partner of the U.S. in East Asia. In 2024, the U.S. faced the third largest trade deficit of $73.9 billion with Taiwan. The US main imports from Taiwan include base metals, iron, steel, and tools, as well as machinery and mechanical appliances. Meanwhile, the U.S. exports agricultural products, aircraft parts, and technology components to Taiwan. Despite political tensions surrounding Taiwan’s status, the U.S. maintains strong trade relations with it.
US Trade Deficit with Japan
Japan is the sixth largest trading partner for the U.S. globally. In 2024, the United States faced the fourth largest trade deficit of $68.5 billion with Japan. The U.S. imports automobiles, machinery and consumer electronics from Japan. The two countries have strong economic ties through the U.S.-Japan Trade Agreement, which aims to promote fair trade practices between the two largest economies.
US Trade Deficit with Other Asian Countries
Additionally, in Asia, the US has the fifth largest trade deficit with South Korea of $66 billion. The US also has a massive trade deficit with India, Thailand, Malaysia, Indonesia, and Bangladesh. These countries mainly export textiles, machinery, and industrial products to the US.
Conclusion
The U.S. has massive trade deficits with many Asian countries, particularly China, Vietnam, Taiwan, and Japan. In 2024, the total U.S. trade deficit with its 10 largest Asian trading partners reached approximately $743.4 billion. Overall, the United States faced the massive $1.2 trillion trade deficit in goods in 2024.
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