The US’ trade deficit reached in 2020 its highest level in 12 years, according to Commerce Department’s data released on Friday.
The deficit for total goods and services was $678.7 billion last year, up $101.9 billion, or 17.6%, from $576.9 billion in 2019.
The overall trade deficit last year marked the highest level since 2008.
In 2020, the US’ total exports were $2.1 trillion, down $396.4 billion from the previous year, and recording its lowest level since 2010. The country’s total imports came at $2.8 trillion, down $294.5 billion from 2019.
Former President Donald Trump initiated in 2018 a trade conflict mainly with China, which also included Europe and other countries as well, aiming to resolve unfair trade practices.
Although the US’ trade deficit reached its highest level in 12 years due to COVID-19, its deficit with China has fallen.
The world’s biggest economy saw its trade deficit with China decline by $34.4 billion to $310.8 billion in 2020, according to the data.
While the US’ exports to China increased by $18.2 billion to $124.6 billion last year, its imports from the world’s second largest economy decreased by $16.2 billion to $435.4 billion.
Last year, the US had the largest trade deficit with its southern neighbor Mexico, $112.7 billion. While Germany came in second place with $57.3 billion, it was followed by Switzerland with $56.7 billion.