Trade Deficits Could Indicate Future Tariff Targets, Brokers Say
Countries where the U.S. has a significant trade deficit could be potential targets for future U.S. tariffs, according to panelists speaking during a Jan. 29 customs market update sponsored by Expeditors.
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Expeditors mapped out the countries or regions where there were sizable differences in the values of U.S. imports and exports, said Brenda Smith, global director-government outreach at the broker/forwarder. The trade deficits are worth focusing on because President Donald Trump's Jan. 20 executive order on trade mentions creating "a path toward eliminating destructive trade deficits" (see 2501200002).
The top areas with which the U.S. has significant trade deficits were China, the EU, Mexico, Vietnam, Japan and Canada, "which we believe should be on your radar screen as a risk of a trade remedy," Smith said. Indeed, Trump signaled on Jan. 30 his plans to carry through with 25% tariffs on Canada and Mexico starting Feb. 1 (see 2501300003).
Other trade issues that could come up in 2025 under Trump are a heightened focus on antidumping and countervailing duties, additional forced labor enforcement and continued de minimis enforcement.
“Pay attention to dumping rates. I just think we’re going to see more cases, and rates are potentially going to go up if some of the actions are actually taken that were put forward in [Trump’s] executive order” last week, said Ted Henderson, senior adviser-customs.