The USA' last trade surplus was in 1991. Except for that year, the U.S. has run consistent trade deficits since the mid 1970s. Its largest trade deficit is with China, a country that enjoys large trade surpluses with many nations.
Considerations
Classic economic theorists of the 1700s, especially Adam Smith, advocated free trade over the mercantilist approach. Classical theory held that nations did not necessarily need trade surpluses.
History
A Commerce surplus is baggage of the larger economic belief of balance of Commerce, which refers to the antithesis in fee between a state's imports and exports of goods and services. Provided a homeland exports extended than it imports, it has a favourable balance of Commerce, or Commerce surplus. When imports exceed exports, a Commerce deficit exists.
Theories/Speculation
Mercantilism, the controlling economic opinion in Europe from the 16th to the 18th centuries, held that nations should continue Commerce surpluses by establishing colonies to invest in the ruling state's products and export raw materials, especially gold and silver.Geography
Although the U.S. has run large trade deficits overall, it has small trade surpluses with a few countries, including Egypt, Australia, the Netherlands and England.
Expert Insight
According to the Economic Policy Institute, the top surplus industries for the U.S. (in which it exports more than it imports) include aircraft and aircraft equipment, construction machinery, and chemicals and related products.
