China, EU, Mexico among top targets as Trump readies tariff onslaught

Nevin Al Sukari - Sana'a - Trump is set to unleash tariffs on Wednesday—what he has dubbed “Liberation Day”—that will vary from country to country depending on the duties they impose on US goods and other factors such as value-added taxes. — AFP pic

PARIS, April 1 — The countries that run the biggest trade surpluses with the United States may be the prime targets of President Donald Trump’s incoming onslaught of “reciprocal” tariffs.

Trump is set to unleash tariffs on Wednesday—what he has dubbed “Liberation Day”—that will vary from country to country depending on the duties they impose on US goods and other factors such as value-added taxes.

Here is a look at the countries that export much more to the United States than they import:

Perennial champion China

China, the world’s second biggest economy, is the country with the highest trade surplus with the United States, shipping everything from electronics to toys and clothing.

The US-China trade gap reached $295.4 billion last year, according to the US Commerce Department’s Bureau of Economic Analysis (BEA).

Known as the world’s factory, China produces goods for Chinese and foreign companies, including US firms, that are then exported across the globe.

Trump also accuses Beijing of manipulating the yuan to make Chinese-made products more competitive abroad.

The US leader, who had launched a trade war with Beijing during his first term, has already imposed additional 20-percent tariffs on Chinese goods this year, triggering retaliatory duties from Beijing.

Brutal’ EU

The United States had a trade deficit of $235.6 billion with the 27-nation European Union last year.

Trump has slammed the EU as “absolutely brutal” in its commercial relations with Washington.

Ireland had the biggest trade surplus at $86.7 billion, partly due to the presence of US companies that have taken advantage of the country’s low corporate tax.

Germany, Europe’s top economy and major car exporter, came in second at $84.8 billion, followed by Italy at $44 billion.

While US official figures show France has a surplus of $16.4 billion with the United States, French customs data report a deficit of several billion dollars for the European country, since they do not take the same numbers into account.

Mexico and Vietnam

Mexico came in third place with a surplus of $171.8 billion in its trade with the United States, followed by Vietnam at $123.5 billion.

Both countries have become popular with multinationals looking for low-cost manufacturing to export to larger markets.

Mexico is attractive due to its proximity to the United States and a North American trade pact that also includes Canada.

Many US companies have built factories there and Chinese companies are also using the country to access the US market.

Vietnam has also benefited from the trade war between Beijing and Washington during Trump’s first term in office, becoming an alternative manufacturing site in Asia as the US intensified pressure on China.

The trade surpluses of Mexico and Vietnam rose during the first Trump administration.

Vietnam’s trade surplus with the United States doubled between 2017 and 2023.

Mexico became the top exporter of goods to the United States in 2023.

Other surplus kings

Taiwan, a major producer of semiconductors that are vital for the US tech sector, has a trade surplus with the United States of $73.9 billion.

It is followed by major car and tech exporters Japan at $68.5 billion and South Korea at $66 billion.

Canada, which exports car parts, oil and farm products to the United States, is next at $63.3 billion, followed by India ($45.7 billion) and Thailand ($45.6 billion). — AFP