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Trade Deficit with Mexico and Japan Continues to Grow at Unsustainable Rate

May 08, 2017

The trade deficit with Mexico and Japan was found to be growing at an alarming rate following the release of March 2017 U.S. International Trade in Goods and Services monthly data by the Department of Commerce. 

 

[Office of Public Affairs] May 4th, 2017 [commerce.gov]

The trade deficit increased by $363 million with Mexico and by $1.6 billion with Japan from February to March of this year.

“The United States can no longer sustain this inflated trade deficit with our closest trading partners,” said Secretary Ross. “The Trump administration is committed to rebalancing our trade relationships in order to protect American workers and businesses from lopsided trade relationships.”

While China continued to be the United States largest source of trade deficit, the United States year-to-date trade deficit with China improved by 2.5 percent.

Year-to-date, the goods and services deficit increased $9.4 billion, or 7.5 percent, from the same period in 2016. Exports increased $38.0 billion or 7.1 percent. Imports increased $47.5 billion or 7.1 percent.

In March 2017, the trade deficit was $43.7 billion. March exports were $191.0 billion, $1.7 billion less than February exports.  March imports were $234.7 billion, $1.7 billion less than February imports.

The March decrease in the goods and services deficit reflected an increase in the goods deficit of $0.4 billion to $65.5 billion and an increase in the services surplus of $0.4 billion to $21.8 billion.


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  • In 2015 the trade deficit was 50% China, 10% Germany, 9% Japan, 8% Mexico, and 23% other countries. By commodity it was 43% apparel, 23% automotive, 19% energy, 11% electronics, and 4% steel. These are the facts provided by the U.S. Census Bureau tables that anyone can download and put into spreadsheets. This is something that the corrupt media has never done. The big misconceptions are that Mexico and Steel are the main trade deficit problems. That is simply not true. China and apparel are the main trade deficit problems. Obama and Congress have never been serious about reducing the trade deficit because of the socialist desire for the failure of capitalism and campaign finance support from the importers. They have done a great job of keeping this information from the public. Starting with renewal of most favored nation for China, the trade deficit sucks at least half a trillion dollars out of our banks every year. The trade deficit removes the demand for about 50 million jobs and makes our Federal income tax base too small to afford Federal spending. Since 1998, the accumulated trade deficit has been driving the trajectory of the Federal deficit straight down into oblivion and it may be too late to change the trajectory. The half trillion bleeding out of our banks every year and the financing of our Federal deficits is supported by “quantitative easing” which is an innocuous sounding term for a fatal economic addiction created by the Federal Reserve. The only effective way of balancing our trade accounts is to institute three to five year indexed tariffs on imports that exceed exports from each country and this will never happen. This would not be classic protectionism of firms or markets. This would be protection of our economy that can very easily implode into a total freeze on transaction liquidity. If that happens total world wide anarchy will occur. The best of luck to you all.
  • In 2105 the trade deficit was 50% China, 10% Germany, 9% Japan, 8% Mexico, and 23% other countries. By commodity it was 43% apparel, 23% automotive, 19% energy, 11% electronics, and 4% steel. These are the facts provided by the U.S. Census Bureau tables that anyone can download and put into spreadsheets. This is something that the corrupt media has never done. The big misconceptions are that Mexico and Steel are the main trade deficit problems. That is simply not true. China and apparel are the main trade deficit problems. Obama and Congress have never been serious about reducing the trade deficit because of the socialist desire for the failure of capitalism and campaign finance support from the importers. They have done a great job of keeping this information from the public. Starting with renewal of most favored nation for China, the trade deficit sucks at least half a trillion dollars out of our banks every year. The trade deficit removes the demand for about 50 million jobs and makes our Federal income tax base too small to afford Federal spending. Since 1998, the accumulated trade deficit has been driving the trajectory of the Federal deficit straight down into oblivion and it may be too late to change the trajectory. The half trillion bleeding out of our banks every year and the financing of our Federal deficits is supported by “quantitative easing” which is an innocuous sounding term for a fatal economic addiction created by the Federal Reserve. The only effective way of balancing our trade accounts is to institute three to five year indexed tariffs on imports that exceed exports from each country and this will never happen. This would not be classic protectionism of firms or markets. This would be protection of our economy that can very easily implode into a total freeze on transaction liquidity. If that happens total world wide anarchy will occur. The best of luck to you all.