The US Trade Deficit: Economic Winners, Losers, and Future Trends

With the US dollar trading strongly over the last two years, the US trade deficit is expected to expand throughout 2024. This situation raises questions about who benefits and who loses from a larger trade deficit. Generally, a larger US trade deficit harms domestic producers while benefiting global suppliers of goods and services to the US economy. The final outcome, however, will depend heavily on the political landscape, particularly who occupies the White House next January.