The U.S. trade deficit reached a 10-year high in 2018, with the shortfall against China hitting a record $419.2 billion despite Trump administration tariffs aimed at curbing the imbalance. The Commerce Department reported a $621 billion deficit for the year, the largest since 2008 and up from $552.3 billion in 2017.
A 2015 photo of Los Angeles port containers underscores persistent trade challenges as the December deficit hit $59.8 billion—the largest since October 2008. Exports fell for the third consecutive month while imports rose 2.1% to $264.9 billion, driven by pre-tariff stockpiling of consumer goods and equipment.
Protectionist policies including $250 billion in Chinese tariffs and $110 billion in retaliatory Chinese duties failed to reverse the trend. A government shutdown delayed the December report, with adjusted inflation data showing a $91.6 billion real goods deficit that likely reduced fourth-quarter GDP growth to 2.6% from 3.4% in the third quarter.
Exports declined due to weak global demand and a strong dollar, with industrial supplies and capital goods shipments dropping. Imports of consumer goods jumped $2.4 billion, including a $0.7 billion increase in household appliances. The data added to concerns about first-quarter economic growth amid slowing retail sales and business investment.
