US trade deficit hides a $200 billion AI import boom

Imports of products essential for building AI infrastructure have surged by 73% in the US since 2023. These products now account for nearly a quarter of all US imports, and current trade policy largely exempts them from tariffs.

The US trade balance is shifting dramatically, but traditional trade policy is not set up to see it. Products needed to build AI infrastructure are pouring into the country, growing 73% in just two years. Current trade rules treat these products lightly, effectively subsidizing their import and masking their true impact on the overall trade deficit.