Did World War 1 cause the US trade deficit to increase?

Yes, World War I contributed to an increase in the U.S. trade deficit. As the war intensified, European nations relied heavily on American goods, leading to a surge in exports. However, post-war economic adjustments and a decline in European demand, coupled with the U.S. needing to import more goods to meet domestic demands, ultimately resulted in a trade deficit in the years following the war.