United States Trade Deficit
Chart from: "Underlying." Underlying. N.p., n.d. Web. 03 June 2015. <http://www.orcosportsmans.com/Pages/Underlying.htm>.
Data from: "United States Census Bureau." Foreign Trade. N.p., n.d. Web. 03 June 2015. <http://www.census.gov/foreign-trade/statistics/highlights/top/top1112yr.html>.
The total trade deficit of the United States was a staggering $7.4 trillion between 2000 and 2011. About $1.2 million is added to the trade deficit every single minute. Surprisingly, this huge imbalance is attributed to only a handful of countries.
Our largest trade deficit is with China.
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More than 40% of the U.S. trade deficit is with China.
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We import their consumer electronics, clothing, machinery, furniture, toys and more.
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China has become known for opening manufacturing factories that once used to operate in the United States.
Japan is the second largest.
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Approximately 10% of the U.S. trade deficit is with Japan.
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Most of our imports are automobiles, industrial supplies, and equipment.
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Some theories suggest that our trade deficit with Japan is so large because the Japanese currency, the yen, is persistently undervalued making the price of their goods very attractive.
Germany is Third.
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Our trade deficit with Germany comprises approximately 7% of our total deficit.
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The largest single import from Germany is cars.
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Although Germany is a member of the largest global trade organization, the World Trade Organization (WTO), it is widely reported that Germany is covertly subverting the WTO rules on trade tariffs and standards.
The U.S. also has a deficit with its NAFTA partners.
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Canada and Mexico, together, account for about 14% of the U.S. trade deficit.
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Since the U.S., Canada, and Mexico are partners in the the world’s largest trade agreement, the North American Free Trade Agreement (NAFTA), trading between these three countries is extremely large.
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Our trade deficit with Canada is mostly attributed to the U.S. dependence on Canadian crude oil.
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Our trade deficit with Mexico largely stems from the explosion of “maquilladoras,” which are factories on the border of Mexico that hire cheap labor to make low cost products.