The U.S. trade deficit is analyzed in comparison to its main trading partners. The U.S. has a higher demand for imports compared to other countries, leading to a trade deficit. The deficit is due to high economic growth and a strong tendency to import goods. If the U.S. dollar depreciates by 30%, imports could decrease by 20%, but exports would also rise. The overvalued dollar is one reason for the disconnect between economic growth and corporate profits in the early 2000s.