U.S. Trade Deficit

The U.S. trade deficit occurs when the country imports more goods and services than it exports. This means that Americans are buying more from foreign countries than they are selling to them. A trade deficit can indicate strong consumer demand and economic growth, but it can also raise concerns about reliance on foreign products and the impact on domestic industries. Over time, persistent deficits can affect the country’s overall economic health and lead to increased foreign debt. Understanding this balance is essential for grasping the complexities of global trade and its implications for the U.S. economy.