The U.S. current account deficit, the difference between what goods, services and investments Americans are buying from other countries versus what they are selling, jumped to $188.5 billion in the fourth quarter.
Why it matters: That was the largest shortfall since 2007.
Keeping score: Former President Trump cited the large U.S. current account deficit as a primary justification for the trade war with China.
- The deficit more than doubled from $83.9 billion when Trump took office in the first quarter of 2017.
- Even prior to the pandemic, the current account deficit had risen notably, touching $114.6 billion in the first quarter of 2020.