US Trade Deficit Soars to Historical High, Slashing GDP Growth Outlook

The U.S. trade deficit widened to an all-time high in December, weighing on economic growth as imports jumped and inventories declined.

Container ships at the Port of Los Angeles in San Pedro, Calif. App Gomes/AFP via Getty Images

A surge in year-end imports pushed the U.S. goods trade deficit to a record high in December 2024, slashing fourth-quarter economic growth estimates by nearly a full percentage point as the yawning trade gap and shrinking inventories weighed on economic expansion.

The U.S. Census Bureau reported on Jan. 29 that America’s goods trade deficit widened by $18.6 billion, or 18 percent, to an unprecedented $122.1 billion in December. The sharp increase was driven by a $10.8 billion surge in imports, coupled with a $7.8 billion drop in exports.