The goods and services trade deficit rose 7.6% in November to $78.2 billion, a big leap from previous months when the deficit was trailing under the three month moving average, based on Bureau of Economic Analysis data released this week.
Manufactured goods recorded their second biggest monthly deficit this year, hitting $103.3 billion in November. The previous record for the year was set in September at $109 billion. That figure was the biggest monthly gap in two years. The U.S. now has an 11-month goods deficit of $1.08 trillion, which is more than the 12 months deficit of 2023. There is a chance the U.S. breaks the 2022 deficit of $1.17 trillion this year.
Despite the Section 301 tariffs, China remains the largest source of the goods trade deficit. For November, the U.S. goods deficit with China was greater than our deficit with free trade partners Canada and Mexico combined.
Country
November Deficit
YTD Deficit
China
$24.99 billion
$270.42 billion
Mexico
$15.34 billion
$157.20 billion
Vietnam
$10.89 billion
$113.10 billion
Ireland
$9.29 billion
$80.50 billion
Germany
$6.51 billion
$76.38 billion
Source: US Census Bureau, trade by select countries, not seasonally adjusted. (See printed page 16.)
The 2024 China deficit will likely surpass that of 2023, easily beating the $279.1 billion. That is down from 2022 and 2021 figures and surely down from the record high set in 2018 when it hit $418 billion. The yuan’s value versus the dollar was in the 6 to 1 range in the first half of 2023 but weakened to around 7.2 for most of 2024, lowering the price of China-made goods.
Cars, Cows, and Codfish
Our trade gap in passenger vehicles remains massive.
U.S. car companies sold $4.65 billion worth of cars to export markets in November while the country imported $18.6 billion.
The same can be said about the auto parts industry.
The U.S. exported $7.27 billion worth of car parts in November and $80.68 billion year-to-date. We imported $15.24 billion in November, or $178.95 billion year-to-date. (See printed page 24.)
Some top U.S. agricultural items are contributing to the deficit. The last 11 months of 2024 have led to a $10.86 billion deficit in livestock and livestock products, which includes beef. And seafood has a $7.39 billion deficit.
“The U.S. trade deficit for meats and seafood has worsened substantially over the past decades. The largest contributor is the seafood trade, which has long been in a deficit despite the huge potential of U.S. seafood production,” said Andrew Rechenberg, CPA’s economist.
Rechenberg said the fish/seafood deficit is forecasted to be around $20.3 billion in 2024 versus $7 billion in 2000. The trade deficit for beef is forecasted to reach $1.68 billion in 2024 despite having a surplus as recently as 2022 at $1.96 billion
Meanwhile, oil and gas exploration and production remain positive for the overall economy and the deficit. The U.S. recorded a $2.68 billion surplus in oil and gas in November and so far has a $7.97 billion surplus with the world.
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
Trade Deficit Jumps 7.6% in November. Goods Trade Gap Now $1.08 Trillion, Beating 2023 Levels
The goods and services trade deficit rose 7.6% in November to $78.2 billion, a big leap from previous months when the deficit was trailing under the three month moving average, based on Bureau of Economic Analysis data released this week.
Manufactured goods recorded their second biggest monthly deficit this year, hitting $103.3 billion in November. The previous record for the year was set in September at $109 billion. That figure was the biggest monthly gap in two years. The U.S. now has an 11-month goods deficit of $1.08 trillion, which is more than the 12 months deficit of 2023. There is a chance the U.S. breaks the 2022 deficit of $1.17 trillion this year.
Despite the Section 301 tariffs, China remains the largest source of the goods trade deficit. For November, the U.S. goods deficit with China was greater than our deficit with free trade partners Canada and Mexico combined.
Country
November Deficit
YTD Deficit
China
$24.99 billion
$270.42 billion
Mexico
$15.34 billion
$157.20 billion
Vietnam
$10.89 billion
$113.10 billion
Ireland
$9.29 billion
$80.50 billion
Germany
$6.51 billion
$76.38 billion
Source: US Census Bureau, trade by select countries, not seasonally adjusted. (See printed page 16.)
The 2024 China deficit will likely surpass that of 2023, easily beating the $279.1 billion. That is down from 2022 and 2021 figures and surely down from the record high set in 2018 when it hit $418 billion. The yuan’s value versus the dollar was in the 6 to 1 range in the first half of 2023 but weakened to around 7.2 for most of 2024, lowering the price of China-made goods.
Cars, Cows, and Codfish
Our trade gap in passenger vehicles remains massive.
U.S. car companies sold $4.65 billion worth of cars to export markets in November while the country imported $18.6 billion.
The same can be said about the auto parts industry.
The U.S. exported $7.27 billion worth of car parts in November and $80.68 billion year-to-date. We imported $15.24 billion in November, or $178.95 billion year-to-date. (See printed page 24.)
Some top U.S. agricultural items are contributing to the deficit. The last 11 months of 2024 have led to a $10.86 billion deficit in livestock and livestock products, which includes beef. And seafood has a $7.39 billion deficit.
“The U.S. trade deficit for meats and seafood has worsened substantially over the past decades. The largest contributor is the seafood trade, which has long been in a deficit despite the huge potential of U.S. seafood production,” said Andrew Rechenberg, CPA’s economist.
Rechenberg said the fish/seafood deficit is forecasted to be around $20.3 billion in 2024 versus $7 billion in 2000. The trade deficit for beef is forecasted to reach $1.68 billion in 2024 despite having a surplus as recently as 2022 at $1.96 billion
Meanwhile, oil and gas exploration and production remain positive for the overall economy and the deficit. The U.S. recorded a $2.68 billion surplus in oil and gas in November and so far has a $7.97 billion surplus with the world.
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
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