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The US trade deficit widened last year to a record $859.1 billion. Compared to the previous year, the deficit increased by 27%. This is the conclusion of a report by the US Department of Commerce.
According to economists, the phenomenon is linked to the fact that during the surprisingly strong recovery following the coronavirus crisis, American citizens massively bought electronic devices, toys and clothes made abroad.
Expenses
US exports rose 18% to $2.5 trillion last year, but imports rose 21% to nearly $3.4 trillion.
“With millions of citizens forced to spend most of their time at home, Americans’ spending on restaurants, movies or concerts has evaporated,” analysts say.
“This money moved almost overnight towards the purchase of goods such as mobile phones, gardening equipment or furniture. Financial support from the government gave people both the confidence and the material resources to do so. »
The report also indicates that the United States imported $2.9 trillion worth of goods last year. Imports of Chinese products rose 16% to $506.4 billion. The trade deficit with China widened nearly 15% to $355.3 billion.
In total, the United States recorded a $1.1 trillion deficit in its merchandise trade with the rest of the world. This is the first time that the figure of 1,000 billion dollars has been exceeded. This was partially offset by a $231.5 billion surplus in services such as banking, education and tourism.
Costs
“Global trade is not yet back to normal following the coronavirus pandemic,” said Christopher Rupkey, chief economist at financial site Fwdbonds.com. “But that gap might narrow if infections are further contained.”
“It would allow more foreign tourists to visit the United States once more. Their travel expenditures count as an export of US services. »
The United States has not been able to run a trade surplus since the mid-1970s. Previous US President Donald Trump tried to reduce this persistent trade deficit by introducing a tax on foreign goods.
Current US President Joe Biden has kept taxes on regarding $360 billion of Chinese imports, but has gradually reduced taxes on US allies.
Recently, the United States agreed to remove import duties on Japanese steel, introduced by Donald Trump.
