Americas Trade Deficit Grows
Record imports drove the U.S. trade deficit up for the third straight month in August. The deficit in the trade of goods with China and Mexico hit records. Soybean exports fell $1 billion for the month.
The Commerce Department said Friday that the trade gap—the difference between what America sells and what it buys abroad—rose to $53.2 billion in August from $50 billion in July. The August reading was the highest since February.
Imports rose 0.6 percent to a record $262.7 billion on higher shipments of cellphones and autos; exports slid 0.8 percent to $209.4 billion.
The U.S. ran a $76.7 billion deficit in the trade of goods such as machinery and cars. That gap was partially offset by a $23.5 billion surplus in the trade of services such as banking and tourism.
The goods deficit with China rose 4.7 percent in August to a record $38.6 billion; the gap with Mexico widened 56.9 percent to $8.7 billion, also a record.
Mainstream economists view trade deficits as the result of an economic reality unlikely to bend to changes in trade policy: Americans spend more than they produce, and imports fill the gap. The strong U.S. economy also encourages Americans to buy more foreign products.
Source: Time