The United States’ trade deficit in goods reached a record $1.2 trillion last year, driven by strong imports and a resilient economy. American consumers snapped up imported products, including auto parts, weight-loss drugs, computers, and food from other countries, resulting in a 6.6% increase in U.S. imports to a record $4.1 trillion.
U.S. exports also hit a record, reaching $3.2 trillion in 2024, but grew more sluggishly due to the strong dollar making it harder for foreign buyers to purchase American products. The auto industry was particularly affected, with exports of vehicles, parts, and engines falling by $10.8 billion.
The rise in imports is partly a result of lingering effects from the pandemic, when consumers stockpiled Chinese-made goods during lockdowns. This year’s growth was also fueled by increased demand for weight loss drugs, such as Eli Lilly’s popular products, which contributed to a surge in trade with Ireland.
The U.S.-China trade deficit reached $295.4 billion, while Mexico and the European Union followed closely behind. The data has sparked concerns about the impact of President Trump’s tariffs on trade relationships with key partners.
A strong U.S. economy, which continues to attract foreign investment, pushed up the value of the dollar, making imports seem relatively cheap for American consumers, but also pushing up exports in foreign markets. Economists say the trends were driven by the economy’s strength compared to the rest of the world, rather than weakness, which could lead to further trade tensions.
Source: https://www.nytimes.com/2025/02/05/business/economy/us-trade-deficit-2024-record.html