Why Southeast Asia Is Reshaping the US Trade Deficit

The US trade deficit widened to $77.6 billion in May 2026, but the story isn't just about China. In this episode, Lucas and Luna examine how shifting supply chains to Southeast Asia are complicating the trade picture. With new data showing imports from Vietnam, Thailand, and Indonesia surging, they explore whether 'China plus one' strategies are actually reducing the deficit or just relocating it. Lucas breaks down a recent report from the Peterson Institute that shows the US trade deficit with ASEAN countries has grown by 40% since 2020, while Luna questions whether policymakers are tracking the right numbers. They also discuss how the strong dollar and Japan's weak yen are accelerating these shifts, and what it means for American manufacturers and consumers. #TradeDeficit #SoutheastAsia #SupplyChain #Vietnam #ChinaPlusOne #DollarYen #Imports #Exports #PetersonInstitute #ASEAN #Manufacturing #GlobalTrade #Economics #FexingoBusiness #TradeDeficitPodcast #BusinessPodcast #CurrentAccount #TradeBalance Keep every episode free: buymeacoffee.com/fexingo