The U.S. trade deficit increased to its highest recorded level in 2022, thanks in part to a surging trade deficit with China.
The U.S. registered a roughly $948.1 billion goods and services deficit for the year, including a $382.9 billion goods deficit to China, the U.S. Bureau of Economic Analysis (BEA) revealed Tuesday. This 12.2% surge over 2021 marks an all-time U.S. trade deficit record, The Wall Street Journal reported. (RELATED: White House Sends Out Error-Laden Economy ‘Fact Sheet’ On Eve Of SOTU)
OAKLAND, CALIFORNIA – OCTOBER 24: In an aerial view, a container ship arrives at the Port of Oakland on October 24, 2022 in Oakland, California. Justin Sullivan/Getty Images
The yearly goods deficit with China increased by around $29.4 billion in 2022 and far outpaced that with any other country: the U.S. reached yearly deficits of about $203.9 billion and $130.6 billion with the European Union and Mexico respectively, recording a $76.2 billion surplus with South and Central America, based on BEA data.
U.S. exports fell by approximately $2.2 billion in December compared to November, coinciding with a $4.2 billion imports surge, the statistics indicate. However, the December goods deficit to China was $3.0 billion higher than during the previous month.
China experienced one of its worst economic growth years in decades and its first-ever population decline since 1961 in 2022, Reuters reported. General Administration of Customs statistics indicated the country’s overall exports sank 9.9% in December, according to CNN.
The U.S. trade deficit rose as the Federal Reserve hiked its target federal-funds interest rate several times in 2022. That trend has continued into 2023, with a 0.25% interest rate increase Wednesday.
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.