The U.S. trade narrative has sparked intense debate. Since taking office, President Donald Trump frequently used tariffs, portraying the nation as a victim of large goods trade deficits. However, deeper data shows a different picture.
WTO Director-General Ngozi Okonjo-Iweala, in her article "America's Big Trade Win," highlighted that the U.S. is a clear winner in global trade. In 2023, U.S. services exports surpassed $1 trillion, accounting for 13% of the global total, with a trade surplus nearing $300 billion in 2024. High-value services, including intellectual-property royalties exceeding $144 billion last year, underscore the robust economic engine driving 80% of the nation’s GDP and employment.
The benefits are tangible for American workers too. In 2022, services exports directly created 4.1 million jobs, while many jobs linked to manufacturing exports actually stem from the services sector. These statistics challenge the narrative that the U.S. is being shortchanged in global trade.
Looking ahead, WTO economists predict that digitalization will propel the services sector further, with its share in global trade expected to reach 37.2% by 2040. This trend emphasizes the growing importance of digital services, where the U.S. already secures over 15% of the market.
Meanwhile, expert Victor De Decker from the Egmont Royal Institute for International Relations cautioned in an interview with China Media Group that the sweeping tariffs introduced by the Trump administration might hurt the American people. He explained that in today’s complex global supply chains, higher tariffs on unfinished imported goods can hinder domestic production rather than revitalize it.
Ultimately, the evidence suggests that America’s strength lies in its booming services sector. As global trade continues to evolve with digital innovation, policy measures must reflect the complexities of modern supply chains instead of relying on oversimplified strategies.
Reference(s):
cgtn.com
