Global trade imbalance: Top 10 countries with the highest trade deficits in 2023
In 2023, the global economy saw an intensified shift in trade patterns, reflecting evolving consumer behavior, geopolitical tensions, and supply chain reconfigurations.
At the forefront of this imbalance stood the United States, registering the world’s most significant trade deficit at $1.1 trillion, according to the latest figures available as of March 2025.
This massive gap was primarily fueled by robust domestic demand for electronics, crude oil, automobiles, and consumer goods—much of which is sourced from Asia and Latin America.
Top 10 Countries by Trade Deficit (2023):
United States – $1.1 Trillion
India – $245.5 Billion
United Kingdom – $233.1 Billion
Türkiye – $86.3 Billion
France – $82.3 Billion
Philippines – $65.9 Billion
Japan – $47.9 Billion
Spain – $37.5 Billion
Greece – $35.7 Billion
Romania – $31.3 Billion
Key trends driving trade deficits
1. Shift to energy security and clean tech: Countries like the U.S. ($1.1 trillion), India ($245.5 billion), and the UK ($233.1 billion) saw increased imports of energy products amid the global pivot to clean energy and strategic fuel reserves following the Russia-Ukraine conflict. Demand for solar panels, batteries, and electric vehicles also surged, often outpacing domestic production capabilities.
2. Supply chain decentralisation: Many Western economies are still transitioning from overreliance on Chinese manufacturing. The resulting “China Plus One” strategy, where companies diversify sourcing to Southeast Asia, led to rising imports from countries like Vietnam, Thailand, and the Philippines, contributing to the latter's presence on this list.
3. Post-pandemic consumption boom: Pent-up consumer demand, especially in the U.S. and the UK, accelerated imports of electronics, apparel, and luxury goods in 2023. While exports struggled to keep pace, the imbalance widened significantly.
4. Currency fluctuations: Weakened local currencies in countries like Türkiye, Japan, and the Philippines made imports more expensive while hampering export competitiveness—exacerbating trade deficits.
