Record Imports and Widening Trade Deficit: A Balancing Act

The U.S. trade deficit expanded significantly in December due to record-high imports amidst ongoing tariff threats. The deficit surged by 24.7% to $98.4 billion. Recently implemented tariffs targeted goods from Canada, Mexico, and China, affecting the dynamics of international trade and domestic economic growth.


Devdiscourse News Desk | Updated: 05-02-2025 20:00 IST | Created: 05-02-2025 20:00 IST
Record Imports and Widening Trade Deficit: A Balancing Act
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The United States witnessed a sharp increase in its trade deficit last December, driven by a surge in imports reaching unprecedented levels despite looming tariff threats.

According to the Commerce Department's Bureau of Economic Analysis, the deficit widened by 24.7% to $98.4 billion, marking the highest since March 2022. The spike exceeded forecasts, as economists expected the deficit to hit $96.6 billion.

In response to this economic landscape, President Donald Trump suspended a 25% tariff on Mexican and Canadian goods while a new 10% levy on Chinese imports was enforced. The administration stated these measures aim to ensure accountability over illegal immigration and drug trafficking concerns.

(With inputs from agencies.)

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