U.S. Trade Deficit in Manufactures Soars 11% in July
U.S. exports of manufactures in July were $94 billion, down 4% from 2014, imports were $153 billion, up 1%, and the trade deficit soared to $59 billion, up by 11%, continuing the double-digit deficit growth during the first half of the year, as analyzed in the MAPI second quarter report on U.S. and Chinese trade in manufactures.
Particularly noteworthy, the July U.S. deficit in manufactures with China increased by 3% from 2014, with the $40 billion of U.S. imports 5.7 times larger than the $7 billion of U.S. exports to China. The Chinese global surplus in manufactures in July was actually down by 4% in July, but that was a result of trade with others, particularly Asians whose currencies have declined to the dollar more rapidly than has the Chinese currency. From August 2014 to August 2015, the Chinese currency is down 4% to the dollar, the Taiwanese currency 8%, the Indian currency 9%, and the South Korean currency 14%.
The MAPI third quarter report on U.S. and Chinese trade in manufactures should be revealing as to what is happening to the U.S. trade deficit and the Chinese surplus in this turbulent trading year for manufactures.