Archive · 23 Jul 2026
US-China Trade Deficit Hits 20-Year Low
The US trade deficit with China has dropped to its lowest point in 20 years.
This is because the US has put high taxes on Chinese goods and made new trade deals with other countries.
The US is also trying to make more things at home instead of buying them from China.
However, China still controls important supplies like minerals and uses these supplies to gain an advantage.
The US is working to reduce its dependence on China for these supplies.
Despite the tensions, China remains one of the US's biggest trading partners.
US-China trade deficit fell to $200 billion in 2025, the lowest in two decades.
China's share of total US imports dropped to about 9%.
US implemented high tariffs on Chinese goods, including 100% on EVs and over 50% on steel and aluminium.
US secured 19 trade deals covering 32% of global GDP.
US exports reached record levels between February and May 2025.
- Who
- US Trade Representative Jamieson Greer, Senate Finance Committee, President Donald Trump
- What
- US-China trade deficit hits 20-year low
- When
- 2025
- Where
- United States, China
- Why
- Due to US tariffs and trade policies aimed at reducing dependence on China
US Trade Policy
China's Trade Practices
Trade Deficit Reduction
US Trade Policy
The US trade deficit with China has fallen to its lowest level in two decades due to tariffs and trade policies.
China's Trade Practices
China's share of total US imports has decreased, but it remains a significant trading partner.
Tariffs and Trade Deals
US Trade Policy
The US has implemented high tariffs on Chinese goods and secured 19 trade deals covering 32% of global GDP.
China's Trade Practices
China faces high tariffs, particularly on EVs and steel, but remains a major trading partner.
Critical Minerals and Export Controls
US Trade Policy
The US is reducing dependence on Chinese critical minerals by accelerating domestic production.
China's Trade Practices
China controls the supply of critical minerals and uses export controls for strategic purposes.
- US-China Trade Deficit
- $200 billion in 2025
- China's Share of US Imports
- 9%
- US Tariffs on Chinese Goods
- 100% on EVs, 45-50% on most goods, over 50% on steel and aluminium
- US Trade Deals
- 19 framework or reciprocal trade deals covering 32% of global GDP
- US Exports
- Record levels between February and May 2025
- Critical Minerals from China
- Flowing but not at desired pace