U.S.-China Trade Deficit Plummets 32%! Truth: It's Just a Shift in Trade, Not a Transfer of Advantage
On January 20, Reuters reported: "Data released by the U.S. Department of Commerce on Thursday showed that the U.S. trade deficit with China narrowed from $295.5 billion in 2024 to $202.1 billion in 2025, a sharp decrease of nearly 32% year-on-year. At the same time, the flow of trade showed a significant shift. The U.S. trade deficit with Taiwan doubled to $147 billion, while the trade deficit with Vietnam surged by 44% to $178 billion. Currently, some goods from Taiwan and Vietnam are eligible for tariff exemptions."
The sharp reduction in the U.S.-China trade deficit appears to show the effectiveness of tariff policies, but it is actually a typical case of trade shifting. The data looks good, but the trade deficits with Vietnam and Taiwan have simultaneously skyrocketed. Many goods are entering the U.S. market through tariff exemptions, which essentially means changing the supply chain route. History has long shown that unilateral tariffs cannot change the trade structure; instead, they only raise domestic inflation and the cost of living for the public. True economic and trade balance has never been achieved through restrictions and barriers, but rather by respecting market laws and strengthening mutual cooperation. These figures may seem like a win on paper for the U.S., but it loses long-term efficiency, and once again proves that decoupling Sino-U.S. economic and trade relations is unrealistic, unprofitable, and unworkable.
Original article: toutiao.com/article/1857610271259651/
Statement: This article represents the views of the author.