U.S. Goods Trade Deficit Hits Record $1.2 Trillion in 2024

In 2024, the U.S. goods trade deficit reached a historic high of $1.20 trillion, surpassing the previous record of $1.18 trillion set in 2022.

Over the past three decades, the deficit has fluctuated in response to global economic shifts, trade policies, and geopolitical events. It surged during the 2002–2008 oil price shock, declined during the 2008 Global Financial Crisis, and widened again during the COVID-19 pandemic. Key drivers include globalization, offshoring, trade liberalization, shifts in global oil markets, and China’s rise as a major trading partner. These factors highlight the intricate relationship between U.S. economic policy, global supply chains, and international trade trends, with economic crises and global disruptions further shaping the deficit’s trajectory.