Ranking the Countries Involved in America's Biggest Trade Deficits

Key Takeaways

• Trade deficits occurs when the U.S. imports more than it exports to a country.
• President Trump has cited the trade deficit as one reason for tariffs, saying a deficit threatens America's economic and national security.
• The U.S. has the largest trade deficits with China and Mexico.

The Impact of Tariffs on Businesses

Legally, a business importing goods pays the fee. The company then has the choice to either pass the cost on to consumers, or absorb the cost.

A company can also switch to a domestic supplier where possible, though prices would typically be higher than what they were previously paying a foreign supplier.

Businesses who export outside the U.S. can also be affected if targeted countries impose their own retaliatory tariffs.