{"id":6281,"date":"2025-02-15T10:10:53","date_gmt":"2025-02-15T04:40:53","guid":{"rendered":"https:\/\/lakshmishree.com\/news\/?p=6281"},"modified":"2025-02-15T10:22:45","modified_gmt":"2025-02-15T04:52:45","slug":"us-trade-deficit-and-impact-of-reciprocal-tariffs-on-key-countries","status":"publish","type":"post","link":"https:\/\/lakshmishree.com\/news\/us-trade-deficit-and-impact-of-reciprocal-tariffs-on-key-countries\/","title":{"rendered":"US Trade Deficit and Impact of Reciprocal Tariffs on Key Countries"},"content":{"rendered":"\n<p>The US executive order on retaliatory tariffs is likely to impact major economies that trade with the country and have high trade deficits with it. A Moneycontrol analysis of UN COMTRADE data shows that some countries will be hit harder as the US tries to reduce its $1.3 trillion trade deficit in 2024.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Key Deficit Areas<\/strong><\/h3>\n\n\n\n<p>Of the total US trade deficit, 65% (over $800 billion) came from 20 major commodity groups. The biggest contributors to the deficit were:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cars:<\/strong> $160 billion<\/li>\n\n\n\n<li><strong>Computers:<\/strong> $100 billion<\/li>\n\n\n\n<li><strong>Mobile phones:<\/strong> $76 billion<\/li>\n<\/ul>\n\n\n\n<p>The combined deficit from these top categories alone stood at $454 billion. Other deficit-heavy commodities include medicines, motor parts, vaccines, crude oil, batteries, furniture, and ornaments, making up one-third of US imports.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Countries Facing the Biggest Impact<\/strong><\/h3>\n\n\n\n<p>Countries that export large amounts of these deficit-heavy commodities may face higher US tariffs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Mexico: <\/strong>The United States previously threatened 25% tariffs against Mexican imports. Mexico has seen its trade imbalance with the United States double, reaching over $200 billion, since 2020.<\/li>\n\n\n\n<li><strong>China: <\/strong>While it has lessened since 2016, China still has a $300 billion trade deficit against the US.<\/li>\n\n\n\n<li><strong>Canada: <\/strong>Another trade deficit contributor, it has also suffered from targeted trade policy by the United States.<\/li>\n\n\n\n<li><strong>Japan &amp; Korea:<\/strong> Both these nations send enormous quantities of automobiles to the United States and both could face higher tariffs.<\/li>\n\n\n\n<li><strong>United Kingdom:<\/strong> Tariffs charged on goods carrying vehicles could also have an effect on the UK.<\/li>\n\n\n\n<li><strong>Vietnam:<\/strong> This country appears in the top five exporters for 10 out of the 20 high-deficit commodities.<\/li>\n\n\n\n<li><strong>India:<\/strong> While India leads three out of the 20 categories, it has a trade deficit with the United States that is less than Vietnam\u2019s.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Trade Dependency &amp; Risk Exposure<\/strong><\/h3>\n\n\n\n<p>Countries that <strong>depend heavily on US trade<\/strong> may feel the most pressure from tariffs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Canada: <\/strong>78% of exports go to the US.<\/li>\n\n\n\n<li><strong>Mexico:<\/strong> 56% of exports go to the US.<\/li>\n\n\n\n<li><strong>Japan:<\/strong> 40% of exports are US-bound.<\/li>\n\n\n\n<li><strong>UK:<\/strong> 20% of goods vehicles go to the US.<\/li>\n\n\n\n<li><strong>Korea:<\/strong> 17% of exports are to the US.<\/li>\n\n\n\n<li><strong>India:<\/strong> The US is the biggest buyer of Indian medicines (40%), furniture (50%), toys (50%), and mobile phones (31%).<\/li>\n<\/ul>\n\n\n\n<p>The US is expected to take a tough stance on trade deficits, meaning many of these nations could see tariffs affecting their exports and economic relationships with the US.<\/p>\n\n\n\n<p>Do you have a news tip for Lakshmishree reporters? Please email us at <strong><a>media@lakshmishree.com<\/a><\/strong>.<\/p>\n\n\n\n<p><sup><sub>Source: <a href=\"https:\/\/www.moneycontrol.com\/news\/business\/economy\/where-does-us-run-deficits-and-who-will-reciprocal-tariffs-hurt-more-12941418.html\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/www.moneycontrol.com\/news\/business\/economy\/where-does-us-run-deficits-and-who-will-reciprocal-tariffs-hurt-more-12941418.html\" rel=\"noreferrer noopener\">Moneycontrol<\/a>.<\/sub><\/sup><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US executive order on retaliatory tariffs is likely to impact major economies that trade with the country and have high trade deficits with it. A Moneycontrol analysis of UN COMTRADE data shows that some countries will be hit harder as the US tries to reduce its $1.3 trillion trade deficit in 2024. Key Deficit [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6282,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[53],"tags":[1019],"class_list":["post-6281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-market","tag-us-trade-deficit"],"_links":{"self":[{"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/posts\/6281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/comments?post=6281"}],"version-history":[{"count":1,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/posts\/6281\/revisions"}],"predecessor-version":[{"id":6283,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/posts\/6281\/revisions\/6283"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/media\/6282"}],"wp:attachment":[{"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/media?parent=6281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/categories?post=6281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/tags?post=6281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}