U.S. Trade Deficit Hits Record $1.2 Trillion In 2024

The U.S. trade deficit in goods reached a record $1.2 trillion last year, as American consumers increased their purchases of imported products, while a strong U.S. dollar weighed on export growth Ana Swanson reported for The New York Times.

U.S. imports of goods and services grew by 6.6% to a record $4.1 trillion.

Data released recently by the Commerce Department showed that U.S. imports of goods and services grew by 6.6% to a record $4.1 trillion, as Americans bought large amounts of auto parts, weight-loss drugs, computers, and food from other countries.

U.S. exports of goods and services also reached a record $3.2 trillion in 2024, compared to $3.05 trillion the previous year, according to the Bureau of Economic Analysis (BEA).

In 2023, U.S. exports of mineral fuels and related products totaled $323.17 billion, followed by machinery at $233.01 billion, electrical and electronic equipment at $200.65 billion, and vehicles at $152.83 billion.

BEA data shows that the U.S. trade balance has remained in deficit since 2000, reaching a record $1.2 trillion last year.

The deficit was $200 billion in 2000, doubled to $400 billion by 2005, increased to $500 billion in 2010, rose to $800 billion in 2015, surpassed $1 trillion in 2020, and reached $1.2 trillion in 2024.

Over the past 24 years, the U.S. has been unable to achieve a trade surplus, highlighting its reliance on global suppliers.

This trend suggests that the country's manufacturing base has largely shifted overseas, despite former President Donald Trump's promises to bring production back. A strong dollar has also contributed to increased imports and raised the cost of U.S. exports for trading partners.