June's trade deficit with China could buy the Washington Post 106 times
This morning, the U.S. Department of Commerce released the latest monthly U.S. trade figures showing that the overall international goods and services deficit fell to $34.2 billion, down $9.9 billion from May. Along with the overall deficit, the U.S. goods deficit with China dropped to $26.6 billion in June. But, the U.S. goods deficit with Japan rose to $5.5 billion in June.
Our reaction here at the Alliance for American Manufacturing (AAM) is mixed.
AAM President Scott Paul said:
I’m encouraged by the increase in advanced technology product exports, but my optimism is tempered by a growing trade deficit with Japan and a stubbornly high trade deficit with China.
Currency manipulation is a key driver of the “stubbornly high” trade deficit with China. Beijing’s currency manipulation violates free market principles. American manufacturers lose out as a result.
President Obama and Congress must take action to address this ongoing problem with China. President Obama could designate China as a “currency manipulator label.” In the House and Senate, Members can co-sponsor bipartisan currency legislation. Both sides of Congress have acted on currency manipulation in the past, but have failed to pass legislation in the same year.
Americans agree that action is needed. President Obama and Congress must work together to take action.
To put it into perspective: Jeff Bezos, founder of Amazon, will buy the Washington Post for $250 million. The trade deficit with China in June ($26.6 billion) could buy the Washington Post 106 times over.
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