NEW DELHI — The U.S. imports more from Asian countries than it exports and as per available data the U.S. runs trade deficits with most of Asian countries except Singapore. The U.S. has trade surplus of US$8 billion with Singapore.
While the U.S. imports US$985 billion from Asia, the total value of its exports to the region is US$452 billion, as per the data from U.S.A Census Bureau. The U.S. shipped US$116 billion of goods to China in 2016 but it imported goods worth US$463 billion from China. The result is a U.S. trade deficit of US$347 billion, the largest of any U.S. trading partner.
Experts point out that a lower standard of living, which allows companies in China to pay lower wages to workers and an exchange rate that is partially fixed to the dollar is the reason for the trade deficit.
Other Asian countries which the U.S. has a huge trade deficit with are Japan (US$69 billion), Vietnam (US$32 billion), South Korea (US$28 billion), and Malaysia (US$25 million).
With India, the U.S has a trade deficit of US$24 billion, with Thailand US$19 billion and with Taiwan and Indonesia it has US$13 billion respectively, besides countries like Philippines, Cambodia, Sri Lanka, Pakistan and Nepal although the trade deficit does not exceed US$2 billion with any of them.
With Asean nations, U.S. goods and services trade totalled US$241.7 billion in 2013 while the U.S. goods and services trade deficit with Asean countries was US$40.7 billion in the same year, as per the office of the United States Trade Representative.
U.S. President Donald Trump has been vocal about his country’s large trade deficit. Blaming unfair trade practices by the trade partners of U.S., he has also tasked the U.S. commerce department to investigate the trade deficit of countries against the U.S. like China, Japan, Germany, South Korea, Canada and India.
The U.S. trade deficit had risen to its highest level since January this year while the trade deficit with China also saw a sharp spike during that period, as per the U.S. commerce department.