The latest monthly U.S. trade figures were released this morning by the U.S. Department of Commerce:
- In May, the overall U.S. international goods and services deficit rose to $45.1 billion, up from $40.1 billion in April (revised).
- The monthly U.S. goods deficit with China climbed to $27.9 billion in May, up from $24.1 billion in April.
- The U.S. goods deficit with Japan fell to $5.4 billion in May, down from $6.9 billion in April.
Said Alliance for American Manufacturing (AAM) President Scott Paul:
“The Administration’s approach on economic balance with China is not working. The trade deficit with China is going up, not down. Right now, the biggest impediment to a true resurgence in manufacturing is this gross imbalance. The Administration and Congress must crack down on currency manipulation, China’s government subsidies to industry, and vigorously pursue trade cases against China’s market distorting practices.
“I’m not holding my breath that the upcoming Strategic and Economic Dialogue talks will produce results. Rather, the Administration needs a topline goal for reducing the trade deficit with China. I’d suggest that President Obama pursue policies to cut it in half over the next three years. Otherwise, the president’s goal of creating one million new manufacturing jobs in America will be impossible to achieve.”
In a recent op-ed, Paul explained why China poses a serious challenge to U.S. economic security.
CHART OF THE DAY:
America’s record goods trade deficit with China helps fuel Beijing’s military expansion. See below. A rising trade deficit tracks closely with a rising Chinese military budget.
The Alliance for American Manufacturing is a non-profit, non-partisan partnership formed in 2007 by some of America’s leading manufacturers and the United Steelworkers to explore common solutions to challenging public policy topics such as job creation, infrastructure investment, international trade, and global competitiveness. For more information, please visitwww.americanmanufacturing.org.
AAM is releasing its blueprint for an American manufacturing resurgence, ReMaking America.