Why was the united states in a trade deficit?

In 2017, the total U.S. trade deficit was $566 billion. It imported $2.895 trillion of goods and services while exporting $2.329 trillion. The deficit is higher than in 2013 when it was $478 billion. One reason is that the dollar strengthened 28 percent between 2014 and 2016. A strong dollar makes imports cheaper and exports more expensive.

But the deficit is less than the record $762 billion in 2006. The decrease since then means U.S. exports grew faster than imports. That's good for U.S. businesses and job growth.

President Trump wants to reduce these deficits with protectionist measures. In March 2018, he announced he would impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum. On July 6, Trump's tariffs went into effect. China, the European Union, Mexico, and Canada have announced retaliatory tariffs.

Trump's tariffs will raise the costs of imported steel, increase the price of U.S. automobiles, and create layoffs. The tariffs have depressed the stock market since they were announced. Analysts worry that Trump has started a trade war that will hurt international trade.

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