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US Trade Imbalance Examined

The US imports about 60% more than it exports. All but two of the top 10 US trading partners export more to the US than they import from the US. The potential imposition of steep import tariffs by the incoming US administration aims to redress this situation and encourage more local production and increased exports. Estimating the impacts of tariffs is as complex as the underlying supply chains linked to each type of product as well as counter measures applied by trading partners. We expect to be writing a lot about this topic in the coming months. This article focuses on how the US trade imbalance has evolved and which trading partners and products are likely to see the greatest impact.

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