Yesterday the U.S. Bureau of Economic Analysis released the international trade data for the month of November:
The overall deficit rose to $50.5 billion, the worst reading since January of 2012, but not quite a record, thanks to steady, dramatic improvement in the balance of trade in petroleum products which, at one time, used to be the driving force behind the trade deficit. But no more. What drives the deficit now is manufactured products, and the deficit in that category hit a new record in November of $65.1 billion, topping the previous record of $64.7 billion set only one month earlier. Check out this chart: Manf’d Goods Balance of Trade. Exports of manufactured goods rose to their highest level since December of 2014, but that rise was swamped by a jump in imports to a new record of $176.8 billion. Here’s a chart of imports and exports that also shows the goal that Obama had set in January of 2010 to double exports within five years: Manf’d exports vs. goal. It never happened. It never will.
Scrapping existing trade deals and returning to the use of tariffs to restore a balance of trade, bringing manufacturing back to the U.S., was the centerpiece of Trump’s promise to “Make America Great Again.” So far, all we’ve gotten is the same dithering on trade that we’ve gotten from previous administrations for decades. This trade data shows that instead of becoming great again – at least in the manufacturing sector of the economy – America is getting worse. This isn’t what Americans voted for a year ago.