U.S. Trade Deficit Shifts: 28% Decline with China but 96% Surge with Rest of World

The U.S.-China trade war significantly reshaped the U.S. trade deficit, shifting much of it from China to other countries. From the first nine months of 2018 to the first nine months of 2024, the overall U.S. trade deficit grew by 37%, rising from $635 billion to $872 billion. During this period, the U.S. trade deficit with China decreased by 28%, falling from $301 billion to $217 billion. However, the trade deficit with the rest of the world, excluding China, surged by 96%, climbing from $334 billion to $655 billion.