GDP

The trade imbalance effects the GDP. The GDP combines the personal consumption, private domestic investment, government expenditures and net exports. Net exports are imports minus exports. For 2024 the situation looks like: Personal consumption $19.9 trillion Private domestic investments $5.3 trillion Government expenditures $6.8 trillion Exports $2.0 trillion Imports $4.1 trillion Total $19.9 plus $5.3 plus $6.8 plus $2.0 minus $4.1 equals $29.9 trillion. This shows how the negative balance of trade effects the GDP. If exports equal imports the GDP would be 19.9 plus $5.3 plus $6.8 equals $32 trillion. The US GDP per capita in 2024 was $85.810. If exports and imports were equal the GDP per capita would be $91.515. This is why the government is using tariffs to equalize imports and exports. US manufacturing is increasing in all areas. For example, GE appliances invested a historic $3 billion and Samsung and LG have expanded their US based plants in items like washing machines and refrigerators. This is all part of bringing manufacturing jobs back home.