Aerial view of containers and cargo ships at the Port of Los Angeles on Jan. 19, 2022, in San Pedro, Calif. Photo: Qian Weizhong/VCG via Getty Images
The U.S. trade deficit reached record levels in 2021, rising 27% to a total of $859.1 billion, according to data from the U.S. Census Bureau out Tuesday.
The big picture: The pandemic has caused people to shift their spending away from domestically produced services and toward imported durable goods, Axios' Neil Irwin reports.
- The wider trade deficit reflects Americans' ability to buy goods they want, according to Irwin.
Driving the news: The trade deficit rose 1.8% to $80.7 billion for December as imports surged, according to the data.
- The deficit for goods alone topped $1 trillion for the first time as spending on computers, toys, bicycles, clothing, pharmaceuticals and other goods made in foreign factories rose during the pandemic.
- The deficit was driven by a $576.5 billion increase in imports last year, as Americans purchased more foreign products, according to the New York Times.
- Exports also rose $394.1 billion, or 18.5%, as demand for foreign goods surged.
The big picture: The pandemic has caused people to shift their spending away from domestically produced services and toward imported durable goods, Axios' Neil Irwin reports.
- The wider trade deficit reflects Americans' ability to buy goods they want, according to Irwin.
Go deeper: Surprising pandemic side effect: Soaring trade deficits