Balance of Trade

Previous: $-73.6B

Forecast: $-78B

The balance of trade measures the difference in value between imported and exported goods and services. Higher than expected balance of trade is bullish, while lower than expected balance of trade is bearish.

The US trade deficit widened to $98.4 billion in December 2024, following a revised $78.9 billion gap in November and above forecasts of a $96.6 billion shortfall. It is the highest trade deficit since a record on March 2022, as US companies rushed to secure goods ahead of Trump administration tariffs. It reflects an increase in the goods deficit to $123 billion and a decrease in the services surplus to $24.5 billion. Total imports soared 3.5% to $364.9 billion, led by finished metal shapes, computers, and nonmonetary gold while exports declined 2.6% to $266.5 billion mainly due to pharmaceutical preparations, crude oil and computers. For whole 2024, the deficit increased 17% from 2023 to $918.4 billion. Exports increased 3.9% to $3,191.6 billion and imports went up 6.6% to $4,110 billion. The largest trade gaps were recorded with China ($-295.4 billion), the EU ($-235.6 billion), Mexico ($-171.8 billion) and Vietnam ($-123.5 billion). The trade gap with Canada was $63.34 billion. source: Bureau of Economic Analysis (BEA)