The US trade deficit widened dramatically at the end of 2024 on a surge in imports prior to the start of President Trump’s second term and his follow-through on the promise of sweeping tariffs.
The December shortfall in goods and services trade grew nearly 25% from the prior month to $98.4 billion (slightly bigger than expected), Commerce Department data showed Wednesday.
Source: Bloomberg
That culminated in a full-year deficit of $918.4 billion after the gap narrowed in 2023 by the most in 14 years…
Source: Bloomberg
The value of imports, unadjusted for inflation, increased 3.5% in December, while exports fell 2.6% as firms appeared to front-run the tariffs and loaded up on inventory…
Source: Bloomberg
Not a good sign for Q4 GDP but the ‘front-running’ pre-loaded inventories shift should be over by the end of January.
Tyler Durden
Wed, 02/05/2025 – 08:45
