International trade has risen dramatically in the past 20 years, but the U.S. still runs a trade deficit, most dramatically with China.
Chinese businesses are moving into Detroit, establishing a new stake in the auto industry and perhaps paving the way for the sale of Chinese cars in the US. Despite an overall drop the the US goods and services trade deficit as of March, the U.S. continues to import far more than it exports. No gap is greater than the one between the U.S. and China, even with smaller-than-expected gains for Chinese manufacturing.
Our trade deficit with China was $295 billion in 2011. That’s nearly triple what it was 10 years ago – and represents about 40 percent of the entire U.S. trade deficit. No other country even comes close. The second biggest annual trade deficit is with Mexico – and it’s $64 billion.
Check out our infographic for more on U.S. trade and its significance in the economy. See “What Do Others Say?” for more views on the U.S. trade deficit, then add your voice to the discussion below. How can we improve our balance of trade with China? What’s at stake if we can’t?