US Trade Deficit With China and Why It's So High

jackoftrades

The U.S. Trade deficit with China was $419 billion in 2018. The trade deficit exists because U.S. exports to China were only $120 billion while imports from China were $540 billion.

The biggest categories of U.S. imports from China were computers and accessories, cell phones, and apparel and footwear. A lot of these imports are from U.S. manufacturers that send raw materials to China for low-cost assembly. Once shipped back to the United States, they are considered imports.

China's biggest imports from America are commercial aircraft, soybeans, and autos. In 2018, China canceled its soybean imports after President Trump started a trade war. He imposed tariffs on Chinese steel exports and other goods.

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asr335704

This trade war is not going to help both of the countries in long term.
To reduce trade deficit, US can build a robust system that can reduce all types of costs involved in manufacturing cycle of the items within the country instead of importing from China.

Rhett_Bassard

asr335704 4-9-2019 08:11 AM
This trade war is not going to help both of the countries in long term.
To reduce trade deficit, US ...

We need to boycott the Rs.72 store!
I remember when it used to be Rs.49 (the price of a 650ml Kingfisher).

The article points out that most of the US imports from China are 'finished goods', i.e. assembly of parts made elsewhere.
To compete with China (Mexico, Philippines, India, etc) and bring assembly back to US, regulation and lifestyle need to change. US  needs to eliminate the additional 'overhead' costs of unions, minimum wage, CPS (Child Protective Services), insurance benefits, etc. US assemblers need to give up the dream of home and family to instead live in corporate dormitories, eating Maggi from the street-wala. As this is unlikely to happen in a growing Socialist welfare state, alternatives include a reactionary POTUS, tariffs and boycott.

My contribution:
- US-made phone (BLU)
- ASUS laptop (Taiwan)
- Madras-stitched shirts