Thanks in no small part to a strong dollar, and the animal spirits of the U.S consumer and businesses, the United States goods trade deficit broke a record in 2024. The goods gap with the world is now $1.21 trillion, surpassing the 2022 record of $1.18 trillion. The Bureau of Economic Analysis (BEA) printed their final trade numbers for 2024 on Wednesday.
The goods and services trade deficit totally exploded in December, rising a whopping 24.7% to $98.4 billion, likely caused by businesses front-running expectations of tariffs.
This figure includes the mighty services industry, led by financial services and intellectual property fees. A strong services sector is no match for a manufacturing sector that is heavily import dependent. For 2024, the goods and services deficit total increased $133.5 billion to $918.4 billion, up 17% from 2023, but below 2022’s trade deficit.
The big U.S. services economy, led by Wall Street, is no match for America’s appetite, and in some cases dependencies, on imports. The December increase in the goods and services deficit to just under a trillion dollars is all due to the increase in the goods deficit from November. It rose by $18.9 billion, bringing December’s goods deficit to $122.6 billion, an all-time record for the month. The import surge could be due to companies fearing tariffs and stocking up warehouses just in case.
Goods Gap in Key Industries
In many of these sectors here, the U.S. exports declined and imports rose over 2023 numbers.
In the overall listing by BEA labeled Food, Feed and Beverages, the deficit for 2024 was similar to 2023, at roughly $50.7 billion. Counting this segment alone, which does not include our key exports led by soy and corn, the U.S. agriculture deficit may be worse than we had expected in a CPA report published on January 16.
Food, Feed & Beverages
2024 numbers only
Exports:
$165.25 billion
Imports:
$216 billion
The Fish and Shellfish segment of the food trade is mostly imported. Numbers are similar to last year, with slight upticks of imports.
Fish & Shellfish
2024 numbers only
Exports:
$5.03 billion
Imports:
$25.1 billion
Other major, labor-intensive manufacturing sectors show a negative trend: exports down, imports up.
Item
2024 Exports
Imports
2023 Exports
Imports
Steel products (excl. Rolled steel sheet)
$7.47 billion
$23.15 billion
$7.7 billion
$22.15 billion
Semiconductors
$65.08 billion
$81.94 billion
$57 billion
$72.53 billion
Pharmaceuticals
$107.55 billion
$246.84 billion
$100.9 billion
$203.20 billion
Medical equipment
$45.84 billion
$62.70 billion
$46.4 billion
$57.69 billion
Passenger cars
$58.16 billion
$213.59 billion
$62.19 billion
$203.60 billion
Car parts & accessories
$58.77 billion
$145.66 billion
$63.09 billion
$140.88 billion
Textiles (incl. Fabrics for clothing and furniture)
$8.04 billion
$53.73 billion
$8.19 billion
$51.65 billion
Furniture
$5.13 billion
$41.94 billion
$5.31 billion
$39.48 billion
Top Five Biggest Trade Deficits
Since the imposition of Section 301 tariffs on China in 2018, the goods deficit with China has declined from a record $418.23 billion in 2018 to $295.4 billion today. The result of those tariffs have been an increase in capacity at some U.S. factories, as a March 2023 report by the International Trade Commission attests, but has led to diversification of supply out of mainland China. Vietnam and Mexico are some of the big beneficiaries. Regardless, the trade deficit has increased with all of our top five trading partners, with the exception of China. China is still our biggest source of the trade deficit.
Country
2024 Goods Deficit vs
2023 Goods Deficit
China
$295.40 billion
$279.10 billion
Mexico
$171.80 billion
$152.47 billion
Vietnam
$123.46 billion
$104.58 billion
Ireland
$86.7 billion
$65.55 billion
Germany
$84.82 billion
$82.57 billion
Ireland and Germany account for nearly half of the deficit with the European Union, which was $235.57 billion in 2024, up from $208.68 billion in 2023.
“Goods imports rose in 2024 to a record level of $3.295 trillion, up 6% on the previous year, while U.S. personal consumption rose just 2.8%,” said Jeff Ferry, CPA’s chief economist emeritus. “That indicates that imports continue to take a growing share of the U.S. market. If we balanced trade, U.S. consumption would provide more jobs, revenue, and investment for U.S. workers and businesses.”
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.
U.S. Trade Deficit With the World Breaks Record, Surpasses $1.2 Trillion
Thanks in no small part to a strong dollar, and the animal spirits of the U.S consumer and businesses, the United States goods trade deficit broke a record in 2024. The goods gap with the world is now $1.21 trillion, surpassing the 2022 record of $1.18 trillion. The Bureau of Economic Analysis (BEA) printed their final trade numbers for 2024 on Wednesday.
The goods and services trade deficit totally exploded in December, rising a whopping 24.7% to $98.4 billion, likely caused by businesses front-running expectations of tariffs.
This figure includes the mighty services industry, led by financial services and intellectual property fees. A strong services sector is no match for a manufacturing sector that is heavily import dependent. For 2024, the goods and services deficit total increased $133.5 billion to $918.4 billion, up 17% from 2023, but below 2022’s trade deficit.
The big U.S. services economy, led by Wall Street, is no match for America’s appetite, and in some cases dependencies, on imports. The December increase in the goods and services deficit to just under a trillion dollars is all due to the increase in the goods deficit from November. It rose by $18.9 billion, bringing December’s goods deficit to $122.6 billion, an all-time record for the month. The import surge could be due to companies fearing tariffs and stocking up warehouses just in case.
Goods Gap in Key Industries
In many of these sectors here, the U.S. exports declined and imports rose over 2023 numbers.
In the overall listing by BEA labeled Food, Feed and Beverages, the deficit for 2024 was similar to 2023, at roughly $50.7 billion. Counting this segment alone, which does not include our key exports led by soy and corn, the U.S. agriculture deficit may be worse than we had expected in a CPA report published on January 16.
Food, Feed & Beverages
2024 numbers only
Exports:
$165.25 billion
Imports:
$216 billion
The Fish and Shellfish segment of the food trade is mostly imported. Numbers are similar to last year, with slight upticks of imports.
Fish & Shellfish
2024 numbers only
Exports:
$5.03 billion
Imports:
$25.1 billion
Other major, labor-intensive manufacturing sectors show a negative trend: exports down, imports up.
Item
2024 Exports
Imports
2023 Exports
Imports
Steel products (excl. Rolled steel sheet)
$7.47 billion
$23.15 billion
$7.7 billion
$22.15 billion
Semiconductors
$65.08 billion
$81.94 billion
$57 billion
$72.53 billion
Pharmaceuticals
$107.55 billion
$246.84 billion
$100.9 billion
$203.20 billion
Medical equipment
$45.84 billion
$62.70 billion
$46.4 billion
$57.69 billion
Passenger cars
$58.16 billion
$213.59 billion
$62.19 billion
$203.60 billion
Car parts & accessories
$58.77 billion
$145.66 billion
$63.09 billion
$140.88 billion
Textiles (incl. Fabrics for clothing and furniture)
$8.04 billion
$53.73 billion
$8.19 billion
$51.65 billion
Furniture
$5.13 billion
$41.94 billion
$5.31 billion
$39.48 billion
Top Five Biggest Trade Deficits
Since the imposition of Section 301 tariffs on China in 2018, the goods deficit with China has declined from a record $418.23 billion in 2018 to $295.4 billion today. The result of those tariffs have been an increase in capacity at some U.S. factories, as a March 2023 report by the International Trade Commission attests, but has led to diversification of supply out of mainland China. Vietnam and Mexico are some of the big beneficiaries. Regardless, the trade deficit has increased with all of our top five trading partners, with the exception of China. China is still our biggest source of the trade deficit.
Country
2024 Goods Deficit vs
2023 Goods Deficit
China
$295.40 billion
$279.10 billion
Mexico
$171.80 billion
$152.47 billion
Vietnam
$123.46 billion
$104.58 billion
Ireland
$86.7 billion
$65.55 billion
Germany
$84.82 billion
$82.57 billion
Ireland and Germany account for nearly half of the deficit with the European Union, which was $235.57 billion in 2024, up from $208.68 billion in 2023.
“Goods imports rose in 2024 to a record level of $3.295 trillion, up 6% on the previous year, while U.S. personal consumption rose just 2.8%,” said Jeff Ferry, CPA’s chief economist emeritus. “That indicates that imports continue to take a growing share of the U.S. market. If we balanced trade, U.S. consumption would provide more jobs, revenue, and investment for U.S. workers and businesses.”
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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