The US trade deficit is at record levels

The US trade deficit widened to $ 859.1 billion last year. The deficit has increased by 27 percent compared to last year. This is the conclusion of the US Department of Commerce report.

Economists argue that during the unexpectedly strong recovery after the Corona crisis, U.S. citizens bought large quantities of foreign-made electronics, toys and clothing and that the event was related.

Costs

U.S. exports rose 18 percent to $ 2.5 trillion last year, while imports rose 21 percent to nearly $ 3.4 trillion.

“As millions of citizens are forced to spend most of their time in their own homes, U.S. spending on restaurants, movies or concerts has evaporated,” say researchers.

“That money was diverted overnight to buy things like cell phones, garden equipment or furniture. Government funding gave people hope and material wealth.

The United States imported $ 2.9 trillion worth of goods last year, according to the report. The Imports of Chinese goods Was up 16 percent to $ 506.4 billion. The trade deficit with China has widened by almost 15 percent to $ 355.3 billion.

Overall, the United States had a trade deficit of $ 1.1 trillion with the rest of the world. This is the first time it has surpassed 1 trillion. This was partly offset by a $ 231.5 billion surplus in services such as banking, education and tourism.

Fee

“Global trade has not yet returned to normal after the corona virus outbreak,” said Christopher Roopke, chief economist at the financial website Fwdbonds.com. “But that gap will narrow if infections are contained more.”

“This will allow more foreign tourists to return to the United States. Their travel expenses will be calculated as an export of US services.

The United States has not been able to achieve a trade surplus since the mid-1970s. Former US President Donald Trump sought to reduce this persistent trade deficit Introducing a line On foreign goods.

Incumbent US President Joe Biden maintains tariffs on about $ 360 billion worth of Chinese imports, but has gradually reduced tariffs on allies in the United States.

Recently The United States agreed The tax on Japanese steel introduced by Donald Trump should be removed.

(fjc)