401kRollover Blog

The U.S. trade deficit grew during June to 7.1%, predominately due to record imports, a strong U.S. dollar and heightened consumer demand. The difference in exports and imports increased to $43.8 billion, up from a (revised) May figure of $40.9 billion. Total imports, on the back of increased imports of food and cars, rose 1.2% to $232.4 billion. In addition, total exports fell as global demand for U.S. products weakens at present.

Recent months have seen a 15% gain for the U.S. dollar against its main trading partners’ currencies – therefore, imports have become much cheaper, and exports less competitive. The U.S.’s trade deficit with the European Union is at a record high, and June also saw the trade deficit with China rise significantly too, up 3.3%.

Economist Lauren Rosner, with BNP Paribas, said, “Exports remain far below trend and we have yet to see a decisive rebound following the resolution of the West Coast port strike.” If you are concerned the U.S.’s global competitive edge is rapidly becoming a mere blunt knife, please Like & Share this post.