📈 Trends in the U.S. Goods Trade Deficit from 1992 to Q3 2024

The U.S. goods trade deficit has undergone significant changes over the past three decades, shaped by global economic shifts, trade policies, and major geopolitical events. Amid large fluctuations—rising sharply during the oil price shock from 2002 to 2008, falling during the 2008 Global Financial Crisis, and increasing again during the COVID-19 pandemic—the deficit has steadily expanded over time. Key drivers include foreign trade liberalization, globalization, the rise of offshoring, the establishment of free trade agreements, shifts in global oil markets, and China’s emergence as a dominant trading partner. These trends underscore the complex interactions between domestic economic strategies, global supply chains, and international trade dynamics, with economic crises and global disruptions amplifying their impact.