U.S. Trade Deficit Surged to a 12-Year High of $678.7 Billion Last Year

U.S trade deficit rose by 17.7% to $678.7 billion in 2020, the highest since 2008, according to the Bureau of Economic Analysis press release. The jump in the trade deficit was brought by the COVID-19 pandemic, which disrupted the flow of goods and services.

• Exports of goods and services fell 15.7% to their lowest level since 2010.
• Imports of goods and services tumbled 9.5% to a four-year low.
• The fall in exports led to the economy contracting by 3.5% last year, the biggest drop since 1946.
• Trade flows have been improving, with the December’s deficit narrowing 3.5% to $66.6 billion, worse than expected $65.7 billion.
• December also saw imports of goods gain 1.5% to $217.7 billion while goods exports went up 4.7% to $133.5 billion.

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