Since the imposition of Section 301 tariffs on China in 2018, the goods deficit with China has declined from a record $418.23 billion in 2018 to $295.4 billion today. The result of those tariffs have been an increase in capacity at some U.S. factories, as a March 2023 report by the International Trade Commission attests, but has led to diversification of supply out of mainland China. Vietnam and Mexico are some of the big beneficiaries. Regardless, the trade deficit has increased with all of our top five trading partners, with the exception of China. China is still our biggest source of the trade deficit.

Ireland and Germany account for nearly half of the deficit with the European Union, which was $235.57 billion in 2024, up from $208.68 billion in 2023.

“Goods imports rose in 2024 to a record level of $3.295 trillion, up 6% on the previous year, while U.S. personal consumption rose just 2.8%,” said Jeff Ferry, CPA’s chief economist emeritus. “That indicates that imports continue to take a growing share of the U.S. market. If we balanced trade, U.S. consumption would provide more jobs, revenue, and investment for U.S. workers and businesses.”

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