The US Department of Commerce said that the goods and services trade gap widened to $ 678.7bn in 2020 from $ 576.9bn in 2019.
The US posted its largest annual trade deficit in export markets for US companies since 2008 last year due to the global health crisis.
According to data from the Commerce Department released on Friday, the trade gap between goods and services increased from $ 578.9 billion in 2020 to $ 678.7 billion in 2019. The December deficit narrowed 3.5% from the prior month to $ 66.6 billion, but is higher than economists’ average estimate of $ 65.7 billion.
The epidemic played a key role in boosting demand for COVID-19 to reduce Donald Trump’s deficit and worsen Donald Trump’s four-year push to move supply chains. The former president slapped billions of dollars of tariffs on the European Union and China, sparking a trade war that hurt American manufacturing and agriculture, as it protected certain slices of industry such as steelmakers.
China topped the US trade partners for goods after finishing behind Mexico and Canada in 2019. The Asian nation and the US signed the first phase of a trade agreement a year ago, in which China is expected to purchase US $ 200 billion of additional goods. In two years, it is the result of nearly three years of controversial negotiations that rocked the markets.
For the full year, exports fell by 16%, the highest in six decades, to $ 2.13 trillion, the lowest since 2010. The decline was driven by a 61% drop in travel, representing visitors in the US at $ 76.1 billion. Transportation exports retreated by more than a third to $ 56.4 billion.
Imports declined 9.5% to 2.81 trillion, the smallest value in four years.
The goods-trade deficit for 2020 reached $ 915.8 billion, the highest start to a record since 1961, while the country’s surplus in services fell 18% to $ 237.1 billion since 2012, the smallest.
Overall, the value of US exports and imports rose to $ 7.5 billion in December, the highest since February, but still below $ 79 billion at the end of 2019.