Trade deficit with China only to keep rising - Auggie Tantillo
16 Aug '07
3 min read
AMTAC Executive Director - Auggie Tantillo
The U.S. trade deficit declined to $58.1 billion for the month of June 2007. Including this month's slight drop, the overall U.S. trade deficit is down 7.7 percent this year compared to last. Nevertheless, the U.S. trade deficit is on track to hit approximately $725 billion in 2007.
The U.S. trade deficit with China, however, jumped to $21.2 billion in June, up from $20.0 billion in May. The overall U.S. trade deficit with China grew by $15.6 billion in the first six months of 2007. The January to June U.S. trade deficit with China totals $117.5 billion, up from $101.9 billion for the same time period last year – an increase of 15.3 percent. At its current pace, the U.S. trade deficit with China will approach $270 billion in 2007, dramatically up from last year's record of $232.5 billion.
"The U.S. trade deficit with China is out of control. While the overall U.S. trade deficit is falling due to a weak dollar and other economic factors, the U.S. trade deficit with China keeps growing. Because China cheats by heavily subsidizing its industry and exports, the U.S. trade deficit with China only will keep rising," said American Manufacturing Trade Action Coalition (AMTAC) Executive Director Auggie Tantillo.
"Continued failure by the U.S. government to combat China's predatory trade practices is a prescription for more red ink. If reducing the U.S. trade deficit is a priority, enactment of legislation addressing the disadvantage to U.S. producers caused by foreign border-adjusted taxes and by currency manipulation is imperative,” Tantillo continued.
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