Chinese Imports Down, But U.S. Deficit Likely To Approach Record $900 Billion

  • Date: 15-Jan-2021
  • Source: Forbes
  • Sector:Economy
  • Country:Middle East
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Chinese Imports Down, But U.S. Deficit Likely To Approach Record $900 Billion

One result of the U.S.-China trade war has been an increase in U.S. imports of computer parts, ... [+] furniture, portable hard drives and other manufactured products. from Vietnam, Taiwan and South Korea. Migration of apparel manufacturing, shown here in Hanoi, had begun prior to the trade war.



AFP via Getty Images

Since President Trump entered office, U.S. imports from China have fallen $67.55 billion, 10 times more than U.S. exports to the world's second-largest economy, thereby lessening the U.S. trade deficit.

The impact is pronounced. At the time Trump entered the White House, the U.S. trade deficit was more than five times greater than it was with any other country. Today, it is less than three times greater.

Nevertheless, almost three years into the U.S.-China trade war, three of the four largest U.S. trade deficits in history will have occurred during President Trump's tenure.

That will include the 2020 trade deficit, statistics for which will be released in about three weeks. That deficit will almost certainly be the largest in U.S. history and likely approach $900 billion, even as total U.S. trade will have declined for the second consecutive year.