U.S. Exports Are Up…and Imports Are, Too
Posted by Jeckert on July 13th, 2010
Despite the fact that U.S. exports climbed a little over 2 percent in May, the U.S. trade deficit widened as imports increased 2.9 percent.
Washington Post reporter Howard Schneider states:
“The Obama administration is pushing to boost exports as a way to create jobs, and the increase was welcome news after a disappointing decline in April.
“The overall widening of the country’s trade deficit, however, showed how difficult it will be to rebalance the global economy so that the United States does not consume far more than it produces.”
The monthly trade deficit with China rose $3 billion (to $22 billion) and Schneider quoted AAM Executive Director Scott Paul who said that the deficit represents “wealth and jobs headed overseas.”
Paul was also quoted by Dow Jones Newswires’ Ian Talley and Tom Barkley:
The figures are likely to exacerbate pressure from federal lawmakers on the Obama administration to take China to task on its currency policy. Although China last month announced a move to a more flexible exchange rate, lawmakers say the yuan is still artificially low, undermining U.S. competivity. Treasury Secretary Timothy Geithner declined in a currency report last week to label China a currency manipulator, prompting a fusillade of criticism from Capitol Hill. Legislators are threatening to pass retaliatory laws that would penalize imports from countries that are deemed to be manipulating their currency.
ManufactureThis covered Treasury’s announcement in detail, with a statement released by Paul on behalf of AAM.
Read more here.
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