The largest United States trade deficits in the first half of 2025 were with China, Mexico, Ireland, Vietnam and Taiwan.

This ranking is based on trade in goods only, not including services, according to Census Bureau statistics.

Important fact: domestic savings and investment ultimately determine the trade balance. 

Largest United States trade deficits

In the first half of 2025, the United States ran a deficit in its trade in goods of $689.688 billion, a year-over-year increase of 27.3 percent.

Below are the largest U.S. trade deficits in the first half of 2025, in millions of dollars, and their year-over-year growth rates:

• China: 111,500 (-12.4 percent).
• Mexico: 96,200 (+16.7 percent).
• Ireland: 82,300 (+115.5 percent).
• Vietnam: 81,300 (+57.7 percent).
• Taiwan: 56,200 (+88.9 percent).

Tariffs

According to a U.S. congressional analysis, other macroeconomic factors can affect savings and investment, and thus the size of the deficit or surplus. 

Examples of commonly proposed policies to reduce the trade deficit include tariffs. Tariffs are often suggested for trade deficit reduction. 

By making imports more expensive, tariffs would reduce the demand for imports, resulting in a net gain in net exports and a reduction in the trade deficit. 

This would work with a fixed exchange rate and capital controls. However, with a floating exchange rate, economic theory predicts that the imposition of a tariff would not reduce the trade deficit in the absence of other changes, even if the affected countries did not impose retaliatory tariffs. 

This is because a tariff would reduce the demand for imports, which in turn would reduce the demand for foreign exchange to purchase those imports and lead to an appreciation of the dollar. A higher dollar would reduce demand for U.S. exports and partially reverse the lower demand for imports. 

Unless tariffs change saving or investment patterns, the U.S. would continue to need foreign borrowing, which would generate a trade deficit. Similar arguments apply to non-tariff trade barriers and practices.

Other examples of policies commonly proposed to reduce the trade deficit include: the federal budget deficit, monetary policy, and exchange rates.