Trade War and Higher Tariffs Led to Higher Trade Deficit for the U.S.

During the Obama administration, the U.S. goods trade deficit grew at a modest compound annual growth rate (CAGR) of 0.7%. Despite the implementation of a U.S.-China trade war and increasing import tariffs, the deficit rose sharply during the Trump administration, with a CAGR of 5.4%. This upward trend persisted under the Biden administration, where the deficit grew even faster at a CAGR of 5.8% (January 2021 to September 2024), as the previous administration's trade policies were maintained. By the twelve months ending in Q3 2024, the goods trade deficit had reached $1,146 billion.