The US trade deficit widened to $98.4 billion in December 2024, marking an increase from a revised $78.9 billion gap in November and exceeding expectations of a $96.6 billion shortfall.
US trade gap highest since 2022
This is the highest trade deficit since the record $131.3 billion set in March 2022, which was driven by US companies scrambling to secure goods ahead of tariffs imposed during the Trump administration. The December figure reflects a notable expansion in the goods deficit, which surged to $123 billion, while the services surplus decreased to $24.5 billion. Total imports surged by 3.5% to $364.9 billion, primarily driven by higher demand for finished metal shapes, computers, and nonmonetary gold. On the other hand, exports fell 2.6% to $266.5 billion, with declines seen in pharmaceutical preparations, crude oil, and computers.
Trade deficit increased by 17& in 2024
For the entirety of 2024, the trade deficit increased by 17% compared to 2023, reaching a staggering $918.4 billion. Exports grew by 3.9%, reaching $3,191.6 billion, while imports saw a larger increase of 6.6%, totaling $4,110 billion. The US recorded the largest trade deficits with China, which stood at $295.4 billion, followed by the European Union at $235.6 billion, Mexico at $171.8 billion, and Vietnam at $123.5 billion. Additionally, the trade gap with Canada reached $63.34 billion. These figures highlight the continued challenges facing the US trade balance, driven by rising imports and slower export growth in key sectors.
