US Trade Deficit Hit Nearly $1 Trillion in 2022, Largest on Record

The U.S. trade deficit hit a record of almost $1 trillion in 2022, with more than a third of the total coming from trade with China.

The annual goods and services trade deficit rose 12.2% to $948.1 billion, the Commerce Department reported Tuesday. The goods deficit jumped 9.3% to $1.19 trillion, while the services surplus declined 0.6% to $243.7 billion.

The deficit with China was the largest, climbing $29.4 billion to $382.9 billion. It was followed by the European Union (EU) at $203.9 billion, Mexico at $130.6 billion, and Vietnam at $116.1 billion. The U.S. recorded a trade surplus with South and Central America, totaling $76.2 billion, and the Netherlands at $38.3 billion.

Oil Imports and Exports Rise

Imports of goods were up 14.9% to $3.28 trillion. They increased the most for industrial supplies and materials, led by crude oil. Import gains were also reported for capital goods, consumer goods, automotive vehicles, parts, and engines, and food, feed, and beverages. Services imports added 23.7% to $680.5 billion, with travel and transport higher.

Exports reached $2.09 trillion, a rise of 18.4%, driven up by fossil fuel shipments.