A national emergency has been declared due to large and persistent U.S. goods trade deficits, which reached $1.2 trillion in 2024 and have grown over 40 percent in the past five years. The underlying causes include lack of reciprocity in bilateral trade relationships, differing tariff rates, non-tariff barriers, and trading partner economic policies that suppress wages. These issues reduce U.S. producers' competitiveness, hamper exports, and undermine domestic production, notably in manufacturing and defense. The structural imbalances in the global trading system exacerbate these problems, posing a significant threat to national security and the economy.
Large and persistent annual U.S. goods trade deficits, which have grown by over 40 percent in the past 5 years alone, reach $1.2 trillion in 2024, pose an extraordinary threat to national security.
Underlying conditions include a lack of reciprocity in bilateral trade relationships and disparate tariff rates that have led to the atrophy of domestic production capacity.
The trade deficit reflects asymmetries in trade relationships impacting U.S. producers' ability to export and their incentive to produce, affecting the national economy.
Non-reciprocal differences in tariff rates and extensive use of non-tariff barriers by foreign trading partners constitute unusual threats to the U.S. economic policies.
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