The US President, Donald Trump, has easily made world leaders sick of the risk of their prices.
After announcing taxes on Canada and Mexico and delayed, after hitting Chinese goods by 10 % extra tariffs and threatening to the European Union, countries and markets are concerned about where the US president goes to where Will
Trump’s policies come at a time when the United States runs a major negative trade balance with the world. This happens when a country buys or exports more than other countries.
In 2024, the United States worked in a trade deficit Stock With the rest of the world, more than $ 1.2TN (£ 970bn), but services worked around $ 300 billion.
The chart below shows why the Trump administration has chosen some countries to target rates, and how any trade barriers can be affected.
Analysis is seen on the trade of physical goods against most of the services, which is contrary to the trade of trade Not subject to taxes And border checks.
Which countries import the most goods to the United States?
In 2024, the United States received the highest imports from Mexico, China and Canada. Each of these countries imported more than $ 400 billion worth of goods to the United States.
Mexico and Canada export many vehicles to the United States as well as export energy and oil. Machinery and power equipment also form an important part of Mexican exports to the United States. Chinese exports include electronics, machinery and agricultural equipment.
European and Asian allies – such as Germany, Japan, South Korea and Vietnam – are the next largest exporters in the United States, the United States has imported more than $ 100 billion each of these countries last year. This year, the United States imported $ 68 billion worth of goods from the UK.
Although the European Union is considered to be a major entity for trade and revenue purposes, the data contains the data of each member state.
The collective price of exports since 2009 is 5.2TN for Canada, 5.3tn for Mexico and China .2 7.2TN.
Trump is dealing with big trade deficit
But trade works in both ways. The United States is the world’s largest importer, but China is the largest exporter.
Overall, when calculating the total value of imports compared to exports, the United States also has the world’s largest trading deficit, worth more than $ 1TN. Some countries export more than imports to the United States, and these are nations that Trump is mostly targeting.
According to statistics, countries in which the United States has the highest trade deficit is China and Mexico US International Trade Administration.
The 2024 data shows that America’s largest trade deficit was with China, $ 296 billion. It was 2 172bn for Mexico. These countries were previously among the people who were at risk of hanging prices.
The next America’s biggest deficit is with Vietnam.
Which fields can be most affected?
For Canada – One of the three countries that targets Trump’s prices in the second term – its most important products are being exported to the United States. They are foam fuel, cars and machinery – mostly jet turbines and piston engines. Cars and machinery also represents the largest product groups that are being transferred from the United States to Canada for sale.
While Mexico An important trading surplus with the United States, the United States still sends billions of dollars worth of products to cars, machinery and power equipment in the south of the border. This includes microchips, fiber cables and computer equipment. The same products throughout Mexico also export to their northern neighbor, though its original export cars and trucks.
Mexico and Canada have enjoyed a largely free trade with the United States since 1994 when North America’s Free Trade Agreement (NAFTA) was implemented. It was replaced by the United States Mexico-Canada Treaty (USMCA) in 2020.
In both of these cases, the United States exports a certain amount of oil to its neighbors. Trump’s initial announcement acknowledged when he targeted energy resources by a small tariff rate of 10 %.
Trump has threatened, but has not yet announced, revenues European Union. Data shows that pharmaceutical products such as vaccines, machinery and cars are half of the European Union exports to the United States. From the United States to the European Union, it is flowing in another way, it is oil, pharmaceuticals and machinery.
Finally, there is China – Which has implemented revenge rates against the United States. US exports to China include electrical items such as microchips, oils and soy beans.
Trade between the United States and China is decreasing – in 2018, 21 % of US imports came from China, and by 2023 it was reduced to 14 percent.
Which countries are the most exposed?
When we see that the trade of every country is proportionized by the United States, we can realize how exposed the trade economy of each country is exposed.
According to statistics, the majority of the trade for both Canada and Mexico go to the United States. Comrade.
The European Union, China and the UK are less directly exposed – with their exported products 19 %, 15 % and 14 % to the United States. Inside the European Union, Germany dominates more than $ 160bn at the cost of exports in 2024, but has only 10 % of its global level. Ireland, which exports about $ 100bn to the United States, is the highest of it, more than a quarter of its exports are ready for the US market.
However, even if their direct trade proportion with the United States is low, experts have warned that the co -operation of global trade will mean that countries will be in the firing line. The reason for this is that the modern supply chain is spreading in several countries, in which parts often cross the borders several times to make manufactured products. For example, if Germany was targeted, but not the UK, if a UK company could still be targeted if it provided parts of German products for the US market.
What does this mean for the UK?
At the moment, the UK has avoided a specific risk of rates hanging above it. Some of them may be suffering from the fact that Britain has a relatively balanced trade relationship with the United States compared to other nations.
One of the reasons is that US data is out of Trump’s fires that the United States is out of Trump’s Fire There is an extra money. UK data, on the contrary, recommend. This year, the UK, which had a small equipment of £ 2.4bn this year – has the additional of collective goods and services .4 71.4bn.
Ounce This distinction imposes two reasons for large -scale: regional definitions, with US data, including the Crown dependence, unlike the UK. And the methodology used to estimate the service trade.
Bloomberg Economics It is estimated that if Trump imposes 20 % taxes on the UK, the growth can come at 0.4 % instead of 1.1 % this year.
Services account for most of the trade between the UK and the United States. But if any future revenue is targeted, the most exported products to the United States are pharmaceutical products, cars, mechanical power generators, scientific equipment and aircraft products. The United Kingdom was the largest export of US oil, mechanical power generators, pharmaceutical products and aircraft products.
A complex factor for the labor government is that the Labor government brings the British economy closer to the European Union – as it promised to do in the July elections – the less the room it has to trade. Need to accommodate US demands.
Experts say Washington is likely to demand access to the UK market for US agricultural products-including hormone fed beef and chlorland chicken. It will be politically challenging for labor, but will also take the UK according to EU food safety standards, which will make trade difficult. Therefore, experts have warned that the Career star will be forced to choose between Brussels and Washington.
Sources and procedures
Most visual figures in this piece were removed from the Lord US International Trade Administration. No data is obtained from them. Used product rating is HS4: Category parts such as electrical and machinery include a wide range of products and only top items are specified within them. Each category is a full list of products available Here. Data related to UK imports and exports will be different from ONS data as categories and regional definitions vary.
