AI Data Insight
In the first quarter of 2026, the US trade deficit in goods with China narrowed slightly to $39.793 billion, further contracting from $39.892 billion in the previous quarter. As the "China Plus One" strategy and tariff barriers take effect, China has fallen out of the top ranks of the largest sources of the US trade deficit. In the short term, attention should be paid to US scrutiny of "origin laundering" in third countries, which will drive up the restructuring costs and risks of multinational supply chains.