Charting the course: US trade in 12 charts
Summary
Since taking office on Monday, President Trump has yet to impose new tariffs, though he has directed agencies to investigate current trade agreements. Tariffs remain very much in play. He has mentioned the administration may impose a 25% tariff on imports from Mexico and Canada and levy a 10% tariff on goods from China as soon as February, while also commenting that the European Union will see tariffs as well. If President Trump's first term is any guide, trade policy will remain a key item on the agenda over the next four years. With that in mind, we present a visual guide to the current state of U.S. international trade.
Lay of the land
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The U.S. runs a merchandise, or goods, trade deficit and services trade surplus. The goods deficit (-$100 billion) is significantly larger than the services surplus (+$25 billion) resulting in an overall trade deficit in the neighborhood of $80 billion/month. Services trade is primed for growth ahead.
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Trade balances vary. The United States runs the largest goods trade deficit with China, despite importing more from the European Union (EU) and Mexico. Canada rounds out the top four sources of U.S. imports, but we run a smaller goods trade deficit with that country than we do with some smaller Asian trading partners.
Author
Wells Fargo Research Team
Wells Fargo
