The U.S. global trade deficit in manufactures rose substantially in the third quarter and despite some moderation in Chinese trade, the gap between the two countries continues to widen, according to an analysis from the MAPI Foundation, the research affiliate of the Manufacturers Alliance for Productivity and Innovation.
Over the last 20 years, the growing global economy has allowed manufacturers to enter new markets to serve an increasingly global customer base while also shortening supply chains and reducing cost structures.
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.
Six years past the trough of the Great Recession, it feels to many as if the aura of crisis still haunts the global economic landscape. China’s slowdown, thankfully not a hard landing, has been more protracted than many expected.
Henry Kissinger’s recent, monumental World Order traces the course of nation state relationships as launched by the Treaty of Westphalia in 1648, stressing the need to maintain a peaceful, rules-based system of sovereign states.