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

The U.S. trade deficit in goods reached a record $1.2 trillion in 2024, as American consumers' demand for imported products surged and a strong U.S. dollar hampered export growth.

According to data released by the Commerce Department on Wednesday, imports of goods and services climbed 6.6 percent to an all-time high of $4.1 trillion. Americans purchased substantial quantities of auto parts, weight-loss drugs, computers, and food from other countries.

Record Exports, Sluggish Growth in Goods

U.S. exports of goods and services also hit a record, reaching $3.2 trillion in 2024. This surge was fueled by historic sales of U.S. services, including business and financial advising, as well as foreign spending on travel within the United States.

However, the growth in goods exports was more subdued. A strong U.S. dollar made it pricier for other countries to purchase American products. Consequently, the United States sold fewer cars, car parts, and industrial supplies, such as raw materials and machinery, to the global market.