U.S. Deficit A Record $905 Billion In 2020, But, Miraculously, Trade Off Only 9%

U.S. Deficit A Record $905 Billion In 2020, But, Miraculously, Trade Off Only 9%

U.S. trade totaled $3.77 trillion in 2020, falling below $4 trillion for the first time since 2017, according to Census Bureau data released today.

While the 9% decline might not seem like good news, it is remarkable given the steep declines registered in April, May and June. In May alone, U.S. trade fell almost 30% when compared to the same month a year earlier.

U.S. trade declined $372.71 billion when compared to 2019, less than half the total of 2009. That year, trade fell by $775.41 billion, which was equal to 22.87%.

Strong import growth, particularly in the second half of the year and particularly from China, Mexico, Switzerland and Vietnam, saved what had looked, only six months earlier, like a disastrous year.

With those strong imports, the U.S. trade deficit set a record, topping $900 billion for the first time. The deficits registered in the final three years of former President Donald Trump, who railed against deficits as a candidate and while in office, are the three largest in U.S. history.

The flip side of that is that in two of those years, 2018 and 2019, the United States recorded the largest total in overall trade in U.S. history, the only two years when