Daily Management Review

US trade deficit rises to record $948.1B


In 2022, the US trade deficit increased by 12.2% to $948.1 billion. The Wall Street Journal reported this referring to information from the US Department of Commerce.

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The US Department of Commerce reports that the December balance sheet deficit was $67.4 billion. In contrast to November, exports fell by 0.9% while imports rose by 1.3%. The Wall Street Journal notes that rising demand for consumer items and cars has benefited imports.

The US trade deficit with Canada, Mexico, South Korea, India, Vietnam, and Taiwan widened dramatically in 2022, according to The New York Times (NYT). This resulted from US firms looking for new sources of supplies for imports. The US trade deficit with China, meanwhile, increased by 8.3% to $382.9 billion from the totals for 2021.

According to analysts surveyed by the New York Times, the increasing trade imbalance is evidence that the US economy is rebounding from the crisis brought on by the coronavirus outbreak. They also note that it has been impacted by the reorganization of supply chains brought on by trade restrictions imposed by the White House on China.

source: wsj.com