Mar 6, 2025
Ranking the Countries Involved in America's Biggest Trade Deficits

Key Takeaways
- Trade deficits occurs when the U.S. imports more than it exports to a country.
- President Trump has cited the trade deficit as one reason for tariffs, saying a deficit threatens America's economic and national security.
- The U.S. has the largest trade deficits with China and Mexico.
The Impact of Tariffs on Businesses
Legally, a business importing goods pays the fee. The company then has the choice to either pass the cost on to consumers, or absorb the cost.
A company can also switch to a domestic supplier where possible, though prices would typically be higher than what they were previously paying a foreign supplier.
Businesses who export outside the U.S. can also be affected if targeted countries impose their own retaliatory tariffs.