Amid claims by U.S. leaders that the country is a 'victim' of global trade imbalances, a recent analysis by World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala challenges this narrative. Her article, titled "America's Big Trade Win," reveals that the U.S. remains a dominant force in services trade, with a surplus exceeding $300 billion in 2024 and accounting for 13% of global services exports.
Beyond Goods: The Services Surprise
While the U.S. runs a trade deficit in goods, its thriving services sector—contributing 80% of GDP and employment—has solidified its global position. In 2023, services exports surpassed $1 trillion, driven by intellectual-property royalties ($144 billion) and digital services growth. WTO economists project services could make up 37.2% of global trade by 2040.
Jobs and Digital Dominance
U.S. services exports directly supported 4.1 million jobs in 2022, with manufacturing exports indirectly creating another 2.5 million roles tied to services. Meanwhile, digital services trade—a U.S. stronghold—has quadrupled since 2005 to $4.25 trillion in 2023.
Experts Question Tariff Tactics
Victor De Decker of the Egmont Royal Institute for International Relations told China Media Group that U.S. tariffs risk backfiring. "Today's complex supply chains mean higher costs for unfinished goods could hinder U.S. production," he explained. Critics argue protectionist policies oversimplify global integration and may ultimately burden American consumers and industries.
