U.S. Trade Deficit Hits Record $918.4 Billion in 2024

The U.S. trade deficit surged to $98.4 billion in December 2024, its highest since March 2022, and reached an annual total of $918.4 billion, marking a 17% increase from 2023. This widening gap is attributed to a strong U.S. dollar boosting imports while exports grew modestly, with significant deficits recorded with China, the European Union, and Mexico. President Trump has leveraged this deficit to support his trade reform policies, using it as justification for tariffs aimed at addressing illegal immigration and drug trafficking concerns. Despite agreements with Canada and Mexico to pause these tariffs, new duties were imposed on China, escalating trade tensions. Imports rose to a record $364.9 billion, driven by consumer goods and technology, while exports fell to $266.5 billion. The ongoing tariff threats and the strong dollar have created uncertainty in global trade dynamics.