The U.S. economy is recovering much faster than the rest of the world, a reality that spreads in trade numbers as the gap widens. Americans are starting to spend again, while U.S. exporters are slowing to recover in countries to reduce foreign demand abroad.
The trade deficit in the United States has reached a record 4.4 billion as the US economy has improved, driven by the purchase of imported foreign goods.
The gap between the deficit, what the U.S. buys from abroad and what it sells to other countries was 5.6 percent higher than the February 70.5 billion gap, the Commerce Department said Tuesday.
Imports rose 3.3 percent to $ 2.4 billion, while exports rose 6.6 percent to $ 200 billion. The U.S. imports more than it exports, and imports are higher in dollar terms.
The politically sensitive trade deficit with China rose 11.6 percent to 7 2.7 billion, the largest deficit of any single country.
The U.S. trade deficit totaled 21 212.8 billion in the first three months of this year, up 644.2 percent from the same period last year, when the U.S. economy was largely shut down by the coronavirus epidemic.
The United States recorded a deficit of মধ্যে 61 billion by 2020, the largest annual gap since 2008. Coronavirus disrupted world trade, and shocked then-President Donald Trump’s “America First” policy.
The U.S. economy is recovering much faster than other regions of the world, and as the gap widens, trade numbers continue to play a role. Americans are starting to spend again, while U.S. exporters are slowing to recover in countries to reduce foreign demand abroad.
“Stronger US growth than business partners will widen the trade deficit in 2021,” said U.S. economist Oren Klachen. “U.S. domestic demand will have a strong impact on imports, thanks to improved health conditions, reopening and expanding fiscal historic revenue.”
During his four years in office, Trump adopted a costly trade strategy that imposed punitive tariffs on other countries’ products as a way to close the U.S. trade deficit with the rest of the world and recover millions of lost production jobs.
Trump sought to narrow the trade gap by imposing tariffs on imported goods to the extent that the 1930s trade war that pushed the United States and other countries into the Great Depression.
Trump’s efforts failed to reverse the trade imbalance and angered competitors like China as well as U.S. allies. So far, the Biden administration has not backed down from Trump’s policy.
Some analysts believe that President Joe Biden is moving cautiously because all of Trump’s policies could increase the risk to Democrats close to overturned unions. Organized labor has long complained about the pre-Trump free-speech policy in the United States.
For the month of March, items in U.S. service trade surpluses, airlines and consultancy fees fell to a new low of $ 18.1 billion in the new decade, with prominent blames the COVID-19 restrictions that restricted tourism. In general, the United States is able to reduce its overall deficit to a large extent for a larger surplus in the service trade.
The product deficit in March was a record $ 9.6 billion, up from a deficient deficit of ৯ 6.9 billion in March.