- President Donald Trump has long sought to address the country’s overall trade deficit.
- The trade deficit of combined goods and services reached $ 918.4 billion in 2024, a huge increase from 2023.
- There has been no trade surplus in the United States since 1975.
The US Department of Trade says the commercial deficit of combined goods and services extends to a garband 918.4 billion dollars in 2024.
This is a 17% increase compared to 2023, although it is slightly smaller than the 2022 high record of $ 944.8 billion.
The treatment of trade inequalities is likely to be a major part of President Donald Trump’s second agenda.
One of the first official acts of the President was to sign an executive order seeking a “first trade policy of America”, emphasizing economic investments and reducing the trade deficit.
That is why the trade deficit is important and the role played by Trump’s tariffs.
An imbalance of trade
A trade deficit occurs when a country imports more than exports, which has happened to the United States for decades. The United States has not had a trade surplus since 1975 – exactly 50 years ago.
The US trade deficit for goods alone was a record of $ 1.2 trillion in 2024, and had a trading surplus for about $ 293 billion.
Trade deficits can benefit from the economy by allowing countries to consume more products than produce. Commercial deficits that are very large, however, can damage domestic companies by potentially promoting increased competition for less expensive foreign imports. Large commercial deficits can also potentially reduce the domestic product of a country.
US dollar strength means that imports are a little cheaper for American consumers, which is good. But it also means that exports are more expensive for non -American consumers. This can make us more difficult for us exporters to sell their products.
How Trump plans to balance the trade deficit
The constant trade deficit is something Trump has long sought to return.
Before Trump took office, he suggested a 10% to 20% universal fee for each country – among other things – reduce the number of foreign imports and overthrow the trade deficit.
US President Donald Trump and Japanese Prime Minister Shigeru Ishiba discuss the White House trade policy. Photo AP/Alex Brandon
On Friday, Trump said he would announce “reciprocal” fees in many countries in the coming week.
During a Friday meeting with Prime Minister Shigeru Ishiba, Japan at the White House, Trump said he wanted to cut the American trade deficit with Japan, which in 2024 struck $ 68.5 billion.
Trump did not exclude future fees for Japan. However, Ishiba was very complimentary for the US president during their meeting, and Trump said he did not believe Japan and SH.BA “would have any problems whatever”.
Trump set a 25% tariff in Canada and Mexico and 10% tariff in China earlier this month. Mexico and Canada have then reached an agreement with the Trump administration to stop the fees until at least in early March.
China responded with its 10% fee for US -selected imports – including raw oil, agricultural machinery and pickup trucks.
Part of Trump’s reasoning for tariffs was his disappointment with illegal immigration and border security, as well as the flow of illegal drugs in the United States.
Trump also mentioned the raised trade deficit.
“They have to balance their trade. No. 1,” he told reporters at the common base of Maryland Andrews, REFERENCE About how Canada and Mexico could avoid tariffs. “We have deficits with almost every place – not every place, but almost – and we will change it.”
Last year, the US trade deficit with China was $ 295 billion, a large drop from the $ 418 billion gap set in 2018 – during Trump’s first term.
The trade deficit with Mexico, however, increased from $ 78 billion in 2018 to about $ 172 billion in 2024.
The United States had a $ 63 billion trade deficit with Canada last year, but if oil and gas are left out of the equation, the United States would have a $ 30 billion trade excess with its northern neighbor, according to Marketwatch.