US Trade Gap Highest Since 2022

The US trade deficit widened to $98.4 billion in December 2024, following a revised $78.9 billion gap in November and above forecasts of a $96.6 billion shortfall.

It is the highest trade deficit since a record n March 2022, as US companies rushed to secure goods ahead of Trump administration tariffs.

It reflects an increase in the goods deficit to $123 billion and a decrease in the services surplus to $24.5 billion.

Total imports soared 3.5% to $364.9 billion, led by finished metal shapes, computers, and nonmonetary gold while exports declined 2.6% to $266.5 billion mainly due to pharmaceutical preparations, crude oil and computers.

For whole 2024, the deficit increased 17% from 2023 to $918.4 billion.

Exports increased 3.9% to $3,191.6 billion and imports went up 6.6% to $4,110 billion.

The largest trade gaps were recorded with China ($-295.4 billion), the EU ($-235.6 billion), Mexico ($-171.8 billion) and Vietnam ($-123.5 billion).

The trade gap with Canada was $63.34 billion.