- Shrinking gap reflects broader reshaping of supply chains
- US trade deficits with other countries hit record highs
The US goods-trade deficit with China shrank to the smallest total since 2010 last year, reflecting a decline in imports from its geostrategic rival that will be welcomed in Washington.
The excess of imports over exports to China was $279 billion, US Commerce Department data showed Wednesday. As a share of GDP, the goods deficit with China came in at just 1%, the lowest level since 2002.
Chinese imports have faced higher tariffs since former President Donald Trump imposed protectionist measures against the country during his administration. The Biden administration has also sought to reduce China’s role in US supply chains, and to bolster trade with strategic allies and partners instead.