December 13, 2022
The U.S. trade deficit in goods and services grew to $78.2 billion in October.
![](https://www.patrickchovanec.com/wp-content/uploads/2022/12/Screen-Shot-2022-12-13-at-2.54.09-PM.png)
In 2021, the U.S. trade deficit hit a new record at $845.0 billion. Higher tariff policies under the Trump and Biden Administrations have not made any significant dent in the trade deficit. Usually the trade deficit shrinks during a recession, but it grew rapidly during the Covid recession.
![](https://www.patrickchovanec.com/wp-content/uploads/2022/12/Screen-Shot-2022-12-13-at-3.09.55-PM.png)
The widening trade deficit likely is due in part to the strong U.S. dollar. Though the value of the dollar, on a trade-weighted basis, peaked in October, it is still up +6.0% from a year ago.
![](https://www.patrickchovanec.com/wp-content/uploads/2022/12/Screen-Shot-2022-12-13-at-2.59.19-PM.png)
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