Brief AAM Statement on Latest Monthly Trade Deficit
The monthly U.S. international trade deficit rose to $46.3 billion in January. The monthly goods deficit with China rose to $23.3 billion.
Said Scott Paul, Executive Director of the Alliance for American Manufacturing (AAM):
"The trade deficit is headed in the wrong direction if we want to create jobs and show some sustainable economic growth in America. The $23 billion January trade deficit with China continues on its record, unsustainable trajectory. Our overall exports were up in January, which is a good thing, but import growth nearly doubled export growth. So it is clear the Administration is going to need to do more than simply try to double exports to create jobs and revitalize our nation's manufacturing. The Administration should designate China as a currency manipulator next month, and Congress should pass bipartisan legislation to allow American industry and workers to seek relief from the impact of China's currency manipulation. We must also pursue a more aggressive national manufacturing strategy, focusing on tax, investment, trade, and skills policies.
"Finally, we should ignore China's temporary trade deficit, according to their often unreliable figures. That number is a façade, produced by cooked books, the lunar new year, and rising oil consumption. Make no mistake about it: China still leads the world in mercantilism and makes an outsized contribution to global imbalances. That won't change without American pressure."