U.S. Goods Deficit Hits Record $122.1 Billion in December

The U.S. trade deficit in goods reached a record high of $122.1 billion in December, marking an 18% increase driven by a surge in imports and a decline in exports. This spike in imports, which rose by $10.8 billion, is attributed to businesses stockpiling goods in anticipation of potential tariffs under President Donald Trump's administration. The deficit has been a persistent issue, as highlighted by the $1.2 trillion goods deficit recorded in 2024, slightly surpassing the previous record from 2022. Economists suggest that the trade imbalance might continue to negatively impact the GDP, despite the ongoing economic growth with GDP expanding by 3.1% in the previous quarter. The Federal Reserve is expected to maintain stable interest rates amid these trade challenges. Final trade data for December, which includes services, is awaited to provide a comprehensive picture of the economic impact.