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Trump wants to reduce the trade deficit. This is why this matters.

  • President Donald Trump has long sought to address the country’s general trade deficit.
  • The commercial deficit of joint commodities and services reached $ 918.4 billion in 2024, a significant increase in 2023.
  • There has been no trade surplus in the United States since 1975.

The US Department of Commerce for Joint Commodities and Services says trade deficit It extended to $ 918.4 billion in 2024.

This is a 17 % increase compared to 2023, although it is slightly smaller than the record for 2022 amounted to 944.8 billion dollars.

Trade disruptions will be a major part of President Donald Trump’s second agenda.

One of the first official verbs of the president was the signature Executive Calling for the “First Trade Policy in America”, with a focus on economic investment and reducing trade deficit.

Here is the reason for the importance of the trade deficit and the role of Trump’s tariff.

Commercial imbalance

A trade deficit occurs when a country imports more than its export, which was the case in the United States for decades. The United States has not had a trade surplus since 1975 – exactly 50 years ago.

The American trade deficit on the goods alone was a record $ 1.2 trillion in 2024, and there was a trade surplus on services about $ 293 billion.

The trade deficit can benefit the economy by allowing countries to consume more products than produced. However, the commercial deficit that is very large, can harm local companies by increasing the increasing competition to obtain less expensive foreign imports. It can reduce the large trade deficit of the country’s gross domestic product.

The power of the US dollar means that imports are slightly cheaper for American consumers, which is good. But this also means that exports are more expensive for non -American consumers. It can make it difficult for us to sell their products.

How Trump plans to balance the trade deficit

The ongoing trade deficit is something Trump has long sought to contrary.

Before Trump took office, he suggested a global tariff from 10 % to 20 % on each country – from other things – reduces the number of foreign imports and reduces trade deficit.


President Donald Trump and Japanese Prime Minister Shigro Ishiba at the White House.

US President Donald Trump and Japanese Prime Minister Shigro Ishiba discuss the White House commercial policy.

AP Photo/Alex Brandon



On Friday, Trump said he would announce “mutual” definitions in multiple countries next week.

During a Friday meeting with Prime Minister Shigro Eshiba from Japan at the White House, Trump said he wanted to reduce the US trade deficit with Japan, which in 2024 amounted to 68.5 billion dollars.

Trump did not rule out the future definitions of Japan. However, Ishia was very free for the American president during their meeting, and Trump said he did not believe that Japan and the United States would “have any problem at all.”

Trump imposed a 25 % tariff on Canada and Mexico and 10 % tariffs on China earlier this month. Since then, Mexico and Canada have dealt with the Trump administration to stop the definitions at least at least March.

With its 10 % tariffs, China has responded to the United States’ selected imports – including crude oil, agricultural machines and captured trucks.

Trump’s logical basis for definitions was his frustration with illegal immigration and border security, as well as illegal drug flow to the United States.

Trump also cited the high trade deficit.

“They have to balance their trade, No. 1,” he told reporters at the Andrews joint base in Maryland. Reference How can Canada and Mexico avoid definitions. “We have a deficit with almost every country – not every country, but almost – and we will change it.”

Last year, the US trade deficit with China reached $ 295 billion, a significant decrease in the standard gap of $ 418 billion in 2018 – during the first period of Trump.

However, the trade deficit with Mexico grew from $ 78 billion in 2018 to about $ 172 billion in 2024.

The United States had a trade deficit of $ 63 billion with Canada last year, but if oil and gas were left outside the equation, the United States will have a 30 billion dollar trade surplus with its northern neighbor, according to Marketwatch.

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