A Different View on Trade Deficits

According to foreign trade data from the Census Bureau, the US received $434.6 billion in goods produced by firms in the European Union (EU) countries last year, and the EU countries received $282.3 billion of goods produced by American firms. The result of those trade flows last year is that there was a net inflow of goods entering the US from the EU in the amount of $152.3 billion, or a net outflow of goods from the EU in that amount. We could also describe that outcome as a goods surplus of $152.3 billion for the US and a goods deficit of $152.3 billion for the EU. Measured in terms of who ended up with the greatest amount of goods on net, the US was clearly ahead of the EU with a $152.3 billion goods surplus.
(from Perry)