The U.S. trade deficit rose slightly to $60 billion for the month of May 2007. Despite this month's rise, the overall U.S. trade deficit is down 7 percent this year compared to last.
The U.S. trade deficit with China, however, grew $14.1 billion in the first five months of 2007. The January to May U.S. trade deficit with China totals $96.34 billion, up from $82.23 billion for the same time period last year – an increase of 17.16 percent. At its current pace, the U.S. trade deficit with China will exceed $270 billion in 2007, dramatically up from last year's record of $232 billion.
"With the U.S. Dollar hitting rock bottom against the Euro and other currencies, the U.S. trade deficit should be falling much faster," said American Manufacturing Trade Action Coalition (AMTAC) Executive Director Auggie Tantillo.
"The reason why the U.S. trade deficit remains sky high is because the U.S. government shirks from confronting the predatory trade practices of other countries. The playing field has been tilted against U.S. producers for too long. The predictable disastrous result has been the loss of more than three million middle-class manufacturing jobs," Tantillo continued.
VAT Fairness/Border Tax Equity Act:
"Foreign border-adjusted taxes, mostly value-added (VAT) taxes, rebated on exports and imposed on imports disadvantaged U.S. producers by $294 billion and service providers by $85 billion in 2005. That's an estimated $379 billion disadvantage for just a single year.
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