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From U.S. Department of State

History of the U.S. Trade DeficitIn 1975, U.S. exports had exceeded extrinsic imports by $12,400 million, but that would be the last trade spare the United States would see in the 20th century. By 1987, the American trade shortfall had swelled to $153,300 million. The do business gap began queasy in subsequent years as the dollar depreciated and economic advancement in other countries led to increased demand for U.S. exports. But the American swap deficit swelled again in the late 1990s. Once again, the U.S. economy was growing faster than the economies of America’s major trading partners, and Americans consequently were buying foreign goods at a faster step than people in other countries were buying American goods. What’s more, the financial emergency in Asia sent currencies in that part of the world plummeting, making their goods relatively much cheaper than American goods. By 1997, the American trade deficit $110,000 million, and it was heading higher.

American officials viewed the trade balance with mixed feelings. Inexpensive foreign imports helped prevent inflation, which some policy-makers viewed as a potential danger in the late 1990s. At the same time, however, some Americans worried that a new surge of imports would damage domestic industries. The American steel industry, for instance, fretted about a rise in imports of low-priced steel as foreign producers turned to the United States after Asian demand shriveled. And although foreign lenders were generally more than timely to provide the funds Americans needed to finance their trade deficit, U.S. officials worried that at some point they might adulthood wary. This, in turn, could drive the value of the dollar down, force U.S. interest rates higher, and consequently stifle economic activity.

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