The American trade deficit reaches the second highest level of all time while Trump weighs more prices

By Jeffry Bartash

Imports an increase in December to a record

The trade deficit jumped in December and the United States finished 2024 with the second largest gap of all time, while some companies were looking to bring more imports before President Trump removes the prices.

The trade deficit skyrocketed almost 25% in December for $ 98.4 billion, a sharp increase provided by a surprisingly significant gap in the goods reported last week. The deficit in November was $ 78.9 billion.

During the full year, the American trade deficit totaled $ 918 billion, the government said. It is the second largest gap than after 2022.

Earlier this week, Trump threatened to slap 25% of prices on Mexico and Canada, to give in the last moment with a 30 -day truce. The United States has continued with a 10% price on Chinese products.

The president wants to reduce American trade deficits, blaming them on unfair rules by other countries. His effort to reduce the trade deficit during his first mandate finally failed – he rather increased.

The trade deficit with China decreased in its first four years of power after Trump has set up more prices, but the United States ended up importing more goods from other countries such as Vietnam and Mexico .

Key details: imports increased by 3.5% to $ 365 billion in December. The United States has imported more industrial supplies, computers and consumer goods.

Exports dropped 2.6% to 266.5 billion dollars in the last month of 2024. The United States exported fewer drugs, oil and automotive parts.

Last year, the United States recorded the largest trade deficit in goods, once again, with China. He totaled 295.4 billion dollars in 2024.

The commercial gap of goods totaled 235.6 billion dollars with the European Union, $ 171.8 billion with Mexico and $ 123.5 billion with Vietnam. The gap with Canada was $ 63.3 billion.

The estimates of the services are not included in these annual figures. The United States manages excess service with most countries, which will partly reduce trade deficits with other countries.

Global image: The United States has managed significant and growing trade deficits since President Jimmy Carter in the 1970s – and it is difficult to see how it will change. At least no soon.

Americans can afford to buy more imports because the United States is the richest country in the world, but many goods such as clothing and consumer goods are no longer produced at the national level.

For the future: “It is clear that companies and consumers are trying to get ahead of prices, pushing imports to a record level,” said Eugenio Aleman, chief economist at Raymond James.

Market reaction: The Dow Jones Industrial Average Djia and S&P 500 SPX were ready to open mixed in the trade on Wednesday.

-Jeffry Bartash

This content was created by Marketwatch, which is operated by Dow Jones & Co. Marketwatch is published independently of Dow Jones Newswires and the Wall Street Journal.

  (End) Dow Jones Newswires

  02-05-25 0932 and
Copyright (C) 2025 Dow Jones & Company, Inc.