US trade deficit with Vietnam is 41% above China’s

The news

The US goods trade deficit with Vietnam reached $25.3 billion in September, 41% more than the $17.9 billion deficit with China. Vietnam's quarterly deficit first passed China's in the second quarter of 2025.

The overall US goods and services deficit narrowed 0.7% to $105 billion in September, as exports grew faster than imports.
The year-to-date deficit was 12.2% smaller than in the same period of 2025.

The details

Only Mexico had a larger goods deficit with the US than Vietnam in September, at $28.7 billion. Taiwan ranked third at $21.9 billion, also ahead of China.

Taiwan's deficit increased $3.6 billion in one month as US imports from the island rose $4.2 billion to $27.3 billion.
In August, the US deficits were $24 billion with Vietnam and $16.4 billion with China.

US goods deficits by country in September 2026: Mexico $28.7 billion, Vietnam $25.3 billion, Taiwan $21.9 billion, China $17.9 billion, then South Korea, Germany, Italy, Malaysia, Japan, India, Canada and Ireland.

Taiwan’s jump coincided with a surge in US computer imports. Imports of computers rose $7.6 billion and computer accessories $5.7 billion, pushing capital goods imports up $11.6 billion.

Capital goods imports hit a record in September. The category's trade deficit was $54.3 billion larger than a year earlier.
Consumer goods imports were 12% lower than a year earlier.

Vietnam’s lead over China is more recent than the monthly figures suggest. In the third quarter of 2025, the US goods deficit with Vietnam reached $44.8 billion, against $41.4 billion with China. But China still had the larger cumulative deficit for the full year.

For 2025, the US goods deficit was $202.1 billion with China and $178.2 billion with Vietnam.
Vietnam's deficit increased $54.7 billion from 2024, while China's fell $93.4 billion.

Worth noting

Vietnam’s surplus with the US is almost the same size as its deficit with China. Its statistics office reported a $122.6 billion surplus with the US in the first nine months of 2026 and a $121.5 billion deficit with China. Imports from China reached $187.3 billion. Vietnam's overall trade balance swung to a $19.4 billion deficit over the period as imports grew faster than exports.