If the best way to improve is to work on one’s greatest weakness, then American businesses should concentrate on converting trade deficits with the following 10 nations into trade surpluses.
Goods imported from these top 10 countries into the U.S. outpaced the American exports by US$449.1 billion in 2009.
While the U.S. trades with hundreds of countries and territories, the top 10 nations represent 89.6% of America’s overall $501 billion trade deficit.
Top 10 Countries Causing the U.S. Trade Deficit in 2009
Listed below are the top 10 countries and the corresponding U.S. trade deficit per country. Individual trade deficit amounts were calculated by subtracting each country's total exports from the total imports that America supplied to that trade partner.
- China … -US$226.8 billion, down 14.8% from 2008 (45.3% of U.S. trade deficit)
- Mexico … -$47.5 billion, down 26.2% (9.5% of U.S. trade deficit)
- Japan … -$44.8 billion, down 38.4% (8.9% of U.S. trade deficit)
- Germany … -$28 billion, down 34.7% (5.6% of U.S. trade deficit)
- Ireland … -$20.5 billion, down 10.3% (4.1% of U.S. trade deficit)
- Canada … -$20.2 billion, down 73% (4% of U.S. trade deficit)
- Venezuela … -$18.7 billion, down 51.7% (3.7% of U.S. trade deficit)
- Nigeria … -$15.5 billion, down 54.5% (3.1% of U.S. trade deficit)
- Italy … -$14.2 billion, down 31.4% (2.8% of U.S. trade deficit)
- Malaysia … -$12.9 billion, down 27.6% (2.6% of U.S. trade deficit).
By far, the People’s Republic of China was the largest single contributor to the U.S. trade deficit in 2009.
The top 4 countries were responsible for almost 70% of the U.S. trade deficit.
By continent, 3 of the trade partners with a competitive advantage over the U.S. in international trade were from Asia while another 3 are located in Europe. North American Free Trade Agreement (NAFTA) partners Mexico and Canada are also on the top 10 list, as are South America’s Venezuela and the African nation Nigeria.
Fastest-Improving U.S. Trade Deficit Amounts by Country
To America’s credit, the U.S. was able to reduce by double-digits its trade deficit amount for each of the above countries in 2009. Although China was at the low end of those improvements with a 14.8% slowdown, the U.S. made more significant gains in slashing its trade deficits of the following 5 countries.
- Canada … U.S. trade deficit down by US$54.5 billion (down 73%)
- Nigeria … U.S. trade deficit down by $18.5 billion (54.5%)
- Venezuela … U.S. trade deficit down by $20.1 billion (51.7%)
- Japan … U.S. trade deficit down by $27.9 billion (38.4%)
- Germany … U.S. trade deficit down by $14.9 billion (34.7%).
The U.S. trade deficit reductions from trading with the above 5 countries resulted in a $135.8 billion improvement for 2009.
National Export Initiative Solutions by Key Trade Partners
USA exports in 2009 totaled $1.1 trillion, down 18.7% from 2008. If President Obama’s National Export Initiative is successful, American exports should double to $2.2 trillion by 2014.
Overall, U.S. export growth will go a long way to converting America’s trade deficit into a healthy U.S. trade surplus.
If America selectively focuses its sales in top 10 countries whose exports are causing 90% of the U.S. trade deficit, America's financial improvement could take less time and have even better long-term results.
Sources: U.S. Census Bureau Foreign Trade Statistics, United States International Trade Commission’s Interactive Tariff and Trade DataWeb and United States International Trade Commission Harmonized Tariff Schedule.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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