US Trade Deficit with China

The trade deficit with China in 1985 was $6 million. The current trade deficit with China in 2018 is approaching over $400 billion.

From 1988 to 2018, the past 30 years of trade deficits with China have totaled over $5 trillion.

1988 $ 3.4893 billion

1989 $ 6.2343 billion

1990 $ 10.431 billion

1991 $ 12.691 billion

1992 $ 18.309 billion

1993 $ 22.777 billion

1994 $ 29.5051 billion

1995 $ 33.7895 billion

1996 $ 39.5202 billion

1997 $ 49.6955 billion

1998 $ 56.9274 billion

1999 $ 68.6771 billion

2000 $ 83.833 billion

2001 $ 83.0961 billion

2002 $ 103.0649 billion

2003 $ 124.0682 billion

2004 $ 162.2543 billion

2005 $ 202.2781 billion

2006 $ 234.1013 billion

2007 $ 258.506 billion

2008 $ 268.0398 billion

2009 $ 266.8772 billion

2010 $ 273.0416 billion

2011 $ 295.2497 billion

2012 $ 315.1025 billion

2013 $ 318.6838 billion

2014 $ 344.8177 billion

2015 $ 367.3283 billion

2016 $ 346.9965 billion

2017 $ 375.5764 billion

2018 $ 344.7707 billion (Jan-Oct)

https://www.census.gov/foreign-trade/balance/c5700.html

Reciprocal Trade is based on having your imports and exports balance with each country you trade with.  These are goods provided and services performed from one country to another. It involves jobs. Informed citizens know that the jobs performed in their own country need to be protected within the rules of fair trade. Citizens generally want to provide what they consume, but if foreign made goods and services are a better value, they like the option to buy these.

Most citizens who buy cars sold by other countries are buying cars made in their own country. The US consumers buy a lot of cars from Japan, Germany and South Korea, but a lot of the plants making these cars are in the US and have US workers. These cars are made in the US and are not subject to any US Tariffs.  It’s just the cars that are made in Japan, Germany and South Korea that are subject to US Tariffs. The $70 billion a year in cars and parts we import will be reduced under the new Trade Agreement the US has with Mexico and Canada.

The US Trade Relationship with China is corrupted by China’s theft of intellectual property. US Tariffs need to be applied to goods and services with high technical content and much of the $70 billion a year in electronics and software imports from China and their off-shore third-party manufacturers are in question. 

The best bet the US has to reduce its Trade Deficit with China is the fact that China imports 70% of its Oil and Natural Gas and the US is gaining capacity to export these needed commodities. We will also use increased oil and natural gas exports to Japan and South Korea to reduce our current trade deficits with them.

Prices are based on costs and costs in China are lower than costs in the US. It will take time for the US to cost reduce its manufacturing and Tariffs may be necessary on some goods and services.

Norb Leahy, Dunwoody GA Tea Party Leader