America's trade deficit with other nations hit a fresh record last year, according to new data released Wednesday, in the midst of President Donald Trump's aggressive campaign to close the gap while promoting tariffs as a way to achieve that end.
President Donald Trump speaks via video-conference during the 55th annual meeting of the World Economic Forum in Davos, Switzerland, Jan. 23, 2025. (Halil Sagirkaya/Anadolu via Getty Images / Getty Images)
The Commerce Department reported the U.S. goods deficit soared 14% to $1.2 trillion in 2024, with imports reaching an all-time high of $364.9 billion in December ahead of Trump's return to office.
The report shows the U.S. has significant deficits with several trade partners, including China, Mexico and Canada, which have been targeted by Trump for broad or additional tariffs.
The president on Monday suspended a 25% tariff on Mexican and Canadian goods until next month.
An additional 10% levy on goods from China went into effect Tuesday.
Though the new administration has mostly explained the tariffs as related to controlling illegal immigration and movement of illicit drugs, the surge in the deficit could strengthen its argument for a protectionist trade policy.
Trump says Xi Jinping, China's president, knows where he stands on tariffs. (Ton Molina/Bloomberg via Getty Images / Getty Images)
Trump has often lamented China's large trade deficit with the U.S., which reached nearly $1 trillion last year.
FOX Business' Danielle Wallace and Reuters contributed to this report.