Friday, August 1, 2025

The Truth Banishes Fear!

Ranked: America’s $425B Trade Deficit by Product

The New Diplomat
Writer

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This graphic, sponsored by Tema ETFs, breaks down the deficit by product category, using data from the U.S. International Trade Commission for the first quarter of 2025.

Which Imported Items Have the Deepest Deficits?

The U.S. uses a harmonized trading system to categorize all items. The HTS-2 system has about 100 categories.

HTS-2 Category Import Items Trade Deficit, Q1 2025 (USD)
N/A TOTAL $425.5B
84 Machinery $77.9B
71 Jewelry and Precious Metals $71.4B
85 Electronics $66.6B
87 Vehicles $55.7B
30 Pharmaceuticals $44.6B
29 Organic Chemicals $35.6B
61, 62, & 64 Clothing $25.5B
98 & 99 Special Classifications $17.4B
94 Furniture $14.4B
95 Toys, Games, & Sports Equipment $6.5B
73 Articles of Iron or Steel $6.5B
40 Rubber $5.2B
22 Beverages $5.1B
90 Medical Instruments $4.6B
3 Fish $4.2B
76 Aluminum $4.1B
8 Fruits & Nuts $3.8B
N/A All Others $61.7B

The category that holds the greatest deficit for the U.S. is category 84. This category includes machinery and mechanical appliances and had a $77.9 billion deficit in the first quarter of 2025.

Following closely is category 71, jewelry and precious metals, with a deficit of $71.4 billion. Electronics comes next at $66.6B, then vehicles at $55.7 billion. These high-value, strategic sectors comprise about 64% of the total deficit.

Other top deficit categories include pharmaceuticals, apparel, and chemicals, which add tens of billions of dollars to the topline figure.

Unlike agricultural items not often cultivated in the U.S., such as coffee beans, nearly all the top categories involve items with the potential for their manufacturing to be reshored to the U.S.

The Investment Opportunity

These gaps aren’t just economic vulnerabilities—they represent opportunities.

The recent momentum behind U.S. reshoring is partly driven by sharply rising tariffs under the Trump administration, which have pushed average import duties up severalfold compared to the previous year. Re-shoring is one of the justifications for the policy shift.

As the U.S. looks to reclaim production in areas where it imports the most, select sectors could experience rapid domestic investment and growth.

The Tema American Reshoring ETF (RSHO) invests in companies positioned to benefit from the long-term structural growth opportunities in reshoring, supply chain modernization, and U.S. reindustrialization.

Credit: Visual Capitalist

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