Goods and services deficit hit $41.1 billion in May.
Good news for people who like the steady drip of dismaying news: The monthly goods and services trade deficit total came out today, and it’s more of the same.
The Commerce Department found the deficit was at $41.1 billion in May, which was up $3.8 billion from the April total. Our trade deficit with China alone? $28.3 billion in May.
Mind you: The United States has had a trade deficit since 1975. But this year might be different. It’s election season, and the presidential candidates from both parties are highly skeptical of the established trade order. Changing that order would be a huge deal with huge international implications.
Everybody knows where Donald Trump stands on the broad issue of “trade,” and he’s not making any friends in the Republican establishment by making it a pillar of his campaign. His opponent, Hillary Clinton, has vowed as well to look out for American workers affected by trade. And it’s absolutely gonna be a big deal at both conventions in a few weeks.
All of this talk of trade being a drag on employment has started to rub off on the intelligentsia who comment on the economy by profession. That’s a good thing; this is a discussion worth having. Said Alliance for American Manufacturing President Scott Paul:
“As both presidential candidates lay out their policy plans and head to their respective conventions, the time to consider trade policies is now. Both parties will meet in the heart of manufacturing communities and I urge our leaders to take a look around. When we import far more than we export, the citizens of places like Ohio and Pennsylvania pay the price."