The U.S. Commerce Department reported Wednesday that America’s monthly goods trade deficit in November was $39 billion. This is down $3.2 billion from a revised $42.2 billion in October. The primary reason for the drop was a reduction in the volume and price of imported oil.
However, 2014’s goods and services deficit was up 5.1 percent ($22.3 billion) from the same period in 2013 – with one month’s reporting still to come.
November exports fell to $196.4 billion, $2.0 billion less than October. November imports were $235.4 billion, down $5.2 billion from October.
A trade deficit of $39 billion, while lower than it had been, is still an enormous, humongous amount drained from our economy in a single month. It demonstrates the extent to which our trade “partners” are not reciprocating and actually “trading” with us.
The New York Times reported that,
In November, the politically delicate trade deficit with China dropped 8 percent to $29.9 billion but remained on track to set a high for the year. America’s deficit with China is the largest for any country. It has added to pressure on Congress and the Obama administration to take tougher actions against what critics see as unfair Chinese trade practices.
The widening trade gap with China comes at a time when the administration hopes to finally get Congress to approve the fast-track authority it needs to wrap up a major 12-nation trade agreement with Pacific Rim countries known as the Trans-Pacific Partnership.
So how is that “free trade” thing working out for us? Losing $39 billion in a single month is a terrible, terrible, enormous, humongous tragedy for our country. It represents tremendous pressure on wages and jobs.