Countries Leading to Record US Trade Deficit in 2024

In 2024, the U.S. imported goods worth $1.2 trillion, surpassing exports and marking an annual trade deficit record, posing a significant economic challenge for the American economy. On February 13, Trump announced that his administration would evaluate tariffs and other restrictions imposed on U.S. exports by other countries, proposing reciprocal tariffs. Tariffs of 25% on products from Canada and Mexico will be implemented as of March 4, 2025. One of Trump’s goals is to narrow the multi-billion-dollar gap between imports and exports by encouraging other countries to buy more American goods and support domestic production. The largest trading partners—Mexico, Canada, and China—contribute significantly to this gap. However, data from the Census Bureau shows that the U.S. recorded trade deficits with over 100 countries last year. Gaps with certain countries, like Vietnam and India, have grown as businesses relocated supply chains from China. Monthly goods deficits surged in January due to preliminary census data showing a rise to $153 billion from $123 billion in December, as companies rushed to import ahead of tariffs. Despite a trade surplus in services, the overall deficit in goods and services reached approximately $918 billion in 2024. The U.S. recorded a total deficit exceeding $620 billion with its top five Asian trading partners: China, Japan, South Korea, Taiwan, and Vietnam. The deficit with China, though reduced from its peak in 2018, remains the largest among all U.S. trading partners. Vietnam marked the second-largest deficit among Asian countries at $123.5 billion, exacerbated post-pandemic and following initial U.S. tariffs on China. These deficits were slightly offset by surpluses with Hong Kong, Australia, and Singapore. Last week, Trump announced new 10% tariffs on Chinese goods, adding to those imposed during his first term. In response, China imposed new tariffs but excluded soybeans, its largest import from the U.S. in 2024. Mexico surpassed China in 2023 to become America’s largest supplier, significantly increasing the goods deficit. In 2024, the U.S. recorded a $172 billion goods deficit with Mexico, nearly 2.5 times higher than during Trump’s first year in office. Canada exported goods worth $63 billion more than it imported from the U.S., primarily driven by oil shipments. Most trade with Canada and Mexico under the USMCA agreement is duty-free, though Trump recently announced 25% tariffs, later suspended after agreements on drug enforcement and border migration. The U.S. records trade deficits with most European countries but achieved a $56 billion surplus with the Netherlands, thanks to oil and gas exports. Conversely, deficits with Ireland, Germany, and others weigh down the overall balance. Trump’s trade advisor has criticized EU tariffs on U.S. cars as unequal barriers requiring correction through mutual tariffs. Trade with Middle Eastern, South Asian, and African countries constitutes a smaller share, though the deficit with India has doubled since Trump’s first term. India recently reduced import tariffs on items like motorcycles and smartphone accessories, potentially prompting further U.S. scrutiny.