Key facts
- The U.S. goods trade deficit with 13 Asia-Pacific economies reached $93.8 billion in July.
- Vietnam's bilateral goods deficit with the U.S. hit a record $24.8 billion in July.
- Since 2018, the U.S. deficit with China has decreased by 52% to $202.1 billion in 2025.
- The U.S. trade deficit with Taiwan nearly doubled between 2024 and 2025.
- Vietnam's deficit with the U.S. was $18.7 billion less than Mexico's in 2025.
The U.S. goods trade deficit with 13 key Asia-Pacific economies expanded to $93.8 billion in July, according to Commerce Department data. This growth was largely driven by increased imports from the region, with Vietnam's bilateral deficit reaching a record $24.8 billion for the month.
Analysis suggests that U.S. trade tariffs, initially aimed at China, have reshaped the geography of trade imbalances rather than reducing their overall scale. Since 2018, the U.S. deficit with China has decreased by 52% to $202.1 billion in 2025. However, this imbalance has largely relocated to other Asian manufacturing hubs. Deficits with Vietnam, Taiwan, Thailand, and India all reached record highs in 2025. Taiwan's deficit with the U.S. surged by 865% over the period, while Vietnam's increased by 351%.
More recently, the U.S. deficit with Taiwan nearly doubled between 2024 and 2025 alone, driven by a surge in semiconductor-related imports. In 2025, Vietnam's deficit with the U.S. stood at $178.2 billion, just $18.7 billion less than the deficit with Mexico. The import-to-export ratio for Vietnam was 12.4 times, indicating one-directional sourcing rather than coproduction. If current trends persist, Vietnam could soon surpass both Mexico and Canada in terms of bilateral deficit with the United States.