The container ship was guided by a tug at the Port of Long Beach – Port of Los Angeles amid the coronavirus (COVID-19) outbreak in Los Angeles, California, United States. April 7, 2021
Lucy Nicholson | Reuters
The U.S. trade deficit hit a record high in March as US consumers continued to use government cash to boost demand for foreign-made goods.
The Commerce Department reported Tuesday, with a new round of checks on the $ 1,400 stimulus package and the domestic economy continued to improve, the imbalance of goods and services with the rest of the world has risen to. $ 74.4 billion, the Commerce Department reported Tuesday.
This was the highest ever in the dataset going back to January 1992 and is up 57.6% from the same period a year ago and above $ 70.5 billion in February.
The trade imbalance with China rose more than 22% to $ 36.9 billion. The deficit with Mexico rose 23.5% to $ 8.4 billion.
“The stimulus made US consumers spend through the epidemic, but restrictions in highly contacted industries have diverted consumer spending from locally manufactured services to mostly imported goods,” said Bill Adams. PNC Senior Economist
Exports actually increased this month, rising $ 200 billion, or 6.6 percent, but that was offset by a 6.3 percent or $ 274.5 billion increase in demand for imports.
The deficit rose nearly 10% in 2021 alone and up from $ 47.2 billion in March 2020, just as the United States was entering the first phase of the COVID-19 outbreak of imports in the year. In 2021, it was up 8.5%, while exports were down 3.5%.
Adams said shortages are likely to subside in the coming months as the recovery progresses.
“As the outbreak is under control in the United States, American consumers spend less on imports, shrinking imports, and foreigners buy more US exports as they do. Their economy continues to recover, ”he said.
For March, imports of consumer goods rose the most, an increase of $ 4.5 billion, including an increase of $ 1.2 trillion in apparel, textiles and household goods. Imports of industrial materials and materials increased $ 3.7 billion and capital goods increased $ 3.3 billion.
Industrial materials and materials increased exports of $ 5.2 billion, while capital goods increased $ 2.9 billion and consumer goods increased $ 2 billion.
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