2. What two countries are the US in the largest deficits with, and why?

Expert Solution

A trade deficit – sometimes referred to as a negative trade balance – is an economic concept that applies to foreign trade. In short, a trade deficit means importations from a nation outweigh their exports. In other words, in one year, a nation with a trade deficit spends more money than it gets from its exports. There are trade disparities with several countries around the world, including the United Kingdom, China, Brazil and the United States.

The highest trade deficit in the US is with China. Indeed, more than 65 per cent of the trade deficit – or $419 billion – is attributed to China imports. The big imports the US has bought from China include clothes, machinery, and electronics.

The U.S. has a trade deficit with Mexico too. At just $81 billion, this deficit is substantially smaller than China's. The U.S. imported products worth $346 billion from Mexico including automobiles and car parts.

A $68.2-billion trade deficit with Germany is the US's third-largest trade deficit. The United States has imported $126 billion in car parts and equipment, medicine, and machinery.

Rahul Sunny answered 7 months ago

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