U.S. Trade Deficit in Manufactures Soars in November
U.S. exports of manufactures in November were $92 billion, down 5% from November 2014, while imports were $150 billion, or up by 4% from 2014. As a result, the trade deficit soared to $58 billion, or by 14%, from $51 billion in 2014. This $7 billion increase in the deficit equates to a trade-related loss of about 50,000 American manufacturing jobs in just one month, with the 2015 calendar year job loss headed to more than 600,000.
Chinese trade in manufactures in November showed a striking geographical contrast, adverse for the United States. Chinese global exports of manufactures in November were down 7% from 2014 and imports were up by 1%, with a resulting 13% drop in the trade surplus to $88 billion, the first surplus decline this year, with the calendar year surplus still headed to $1 trillion. The geographic contrast is that while the Chinese global surplus declined, the U.S. bilateral trade deficit with China still increased in November by 3%, to $35 billion, with U.S. imports from China 5.8 times larger than U.S. exports to China. This indicates that while China is facing increased trade competitiveness with some Asian trading partners, largely as a result of tightly managed currency devaluations throughout the region, China continues to increase its surplus with the United States, thanks to the fully convertible, market-based dollar.