[coolguy4]

Because there is a fiscal deficit which requires borrowing, which means that new money is created. If the new money were spent only in the USA it would cause prices to go up a lot, so the money goes overseas so that the price increases are more moderate (arbitrage). Why is there a fiscal deficit? Because politicians want to win elections. If the fiscal deficit were ended then mathematically there could not be a trade deficit.

[dustingetz]

if this is zero sum-ish then who is the counterparty that’s getting screwed and how?

[cryptonector]

Economies are not zero-sum games. World trade _is_ a zero-sum game (all exports and all imports worldwide must net out to zero).