U.S. Trade Balance History (Goods and Services)
Direct answer: The U.S. runs a persistent trade deficit, importing more than it exports. The goods and services trade deficit reached a record -$948 billion in 2022, partially reflecting a pandemic-driven surge in goods imports. The deficit narrowed to approximately -$773 billion in 2023. The U.S. has run a continuous trade deficit since 1975. China, Mexico, and the European Union are the largest deficit trading partners.
U.S. Goods and Services Trade Balance (Selected Years, 2000-2024)
| Year | Trade Balance ($B) |
|---|---|
| 2000 | -$379 |
| 2005 | -$709 |
| 2007 | -$700 |
| 2008 | -$698 |
| 2009 (recession) | -$381 |
| 2015 | -$500 |
| 2018 | -$628 |
| 2019 | -$577 |
| 2020 | -$677 |
| 2021 | -$859 |
| 2022 (record) | -$948 |
| 2023 | -$773 |
| 2024 est. | -$800 |
Source: St. Louis Fed FRED: Net Exports of Goods and Services. Last verified: September 2026.
Frequently asked questions
Is a trade deficit bad for the economy?
Economists disagree. The mainstream view: a trade deficit is neither inherently good nor bad -- it reflects relative national savings and investment patterns. The U.S. has high domestic investment demand that exceeds domestic savings, so the gap is filled by foreign capital inflows (foreigners invest in U.S. assets, funding the deficit). A trade deficit often accompanies strong economic growth (more income = more imports). The mercantilistic view (held by some policymakers): trade deficits mean lost domestic jobs and industrial capacity, particularly in manufacturing. The 2018-2020 trade war with China attempted to reduce the deficit through tariffs; the goods deficit with China fell but the overall deficit continued, as trade shifted to Vietnam, Mexico, and other countries.
What is the difference between goods and services trade?
The U.S. runs a large goods trade deficit (manufacturing, agriculture, energy) partially offset by a services trade surplus (financial services, education, travel/tourism, royalties, software). In 2023: goods deficit approximately -$1.06 trillion, services surplus approximately +$290 billion, net -$773 billion. The U.S. competitive advantage is in services (Wall Street, Silicon Valley, Hollywood), not physical goods manufacturing. Manufacturing trade deficits have driven political pressure for tariffs and reshoring; services trade is less politically controversial but represents a large and growing source of U.S. export revenue.
How do tariffs affect the trade deficit?
Tariffs raise the price of imports, theoretically reducing import demand and narrowing the deficit. In practice, the effect on the overall trade balance is limited: (1) tariffs on one country (China) often redirect trade to third countries (Vietnam, Mexico) without reducing total imports; (2) tariffs raise prices for domestic consumers and businesses using imported inputs, reducing real income and partially offsetting spending cuts on imports; (3) trade deficits ultimately reflect macroeconomic factors (savings/investment balances), which tariffs don't directly address. The 2018-2019 tariffs on China reduced the U.S.-China bilateral deficit modestly but had no significant effect on the total U.S. trade deficit.