The Countries Driving America’s $1.2 Trillion Trade Deficit in Goods
2nd March 2025
The Wall Street Journal, unfortunately these days a Voice of the Crust.
The U.S. imported $1.2 trillion more in goods in 2024 than it exported, a record annual deficit and a major economic irritant for President Trump. On Feb. 13, the president announced that his administration would evaluate tariffs and other trade barriers imposed on U.S. exports by other nations and match them with “reciprocal” tariffs. The president said last week that 25% tariffs on Canada and Mexico would go into effect Tuesday.
This is utter horseshit, and a good indicator of how far reporting in the WSJ has degenerated.
There is no such thing as a ‘trade deficit’, any more than there is a ‘car deficit’ if you buy three cars and only trade in two.
All trade is balanced. Nobody ships good to the U.S. gratis. If the U.S. imports X amount of goods and only exports X-Y goods in return, the difference is in the form of actual money … i.e. pieces of paper (or electronic bits) that are worth no more than what the government says they are. If we are receiving goods and sending bits of paper in return, who is on the short end of that stick?