Global Geopolitical Series: U.S. to target electronics to reduce deficits with China

The Trump administration in the United States has taken an extremely tough stance on U.S. trade deficits with rest of the world, and more so against China as America’s deficit with China is almost half of its total trade deficits with rest of the world. In 2017, U.S. goods trade deficit with China reached a record high of $396 billion ($375 billion by some measures).

With President Trump determined to reduce its deficit with China, expect the U.S. to take actions targeting electronics, which is one of the biggest sources of the deficit.

In 2017, the U.S. deficits in the electronic goods category with China reached almost $170 billion, which is almost half of its deficit with China. Below are the details,

• Phone system devices including smartphones: -US$70.9 billion
• Computers, optical readers: -$49.9 billion
• Computer parts, accessories: -$14.9 billion
• TV receivers/monitors/projectors: -$11.6 billion
• TV receiver/transmit/digital cameras: -$5.9 billion
• Printing machinery: -$5.9 billion
• Electric water heaters, hair dryers: -$5.5 billion