This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: U.S. Trade Deficit Widens to Record as Imports Rebound
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Business > U.S. Trade Deficit Widens to Record as Imports Rebound
Business

U.S. Trade Deficit Widens to Record as Imports Rebound

Editorial Board Published October 5, 2021
Share
U.S. Trade Deficit Widens to Record as Imports Rebound
SHARE

The U.S. trade deficit widened to a record in August as American consumers continued to show a strong appetite for imported goods such as pharmaceutical products, toys and clothing.

Contents
Newsletter Sign-upReal Time Economics

The Commerce Department on Tuesday said the trade gap in goods and services expanded to $73.3 billion in August from $70.3 billion in July as the Delta variant of Covid-19 and supply constraints weighed on global trade.

The August deficit was slightly larger than the prior record of $73.2 billion in June. Imports rose 1.4% in August to $287 billion, also a record high, reflecting higher shipments of consumer goods, as well as industrial supplies by business customers.

As many economies around the world continued to emerge from pandemic-related restrictions, exports also rose to $213.7 billion, up 0.5% from July.

Economists say the pace of the increase in imports is likely to slow in the coming months as U.S. consumer demand cools down.

“With most other economies still behind the U.S. in their recovery from the pandemic, and domestic consumption growth slowing, we still think goods exports will start to catch up with imports soon,” Andrew Hunter, senior U.S. economist for Capital Economics, a research firm, wrote in a note.

Though shipments into and out of the U.S. grew overall in August, issues with global-supply chains continued. As a severe shortage of semiconductors forced auto makers to reduce their production, exports of vehicles and parts fell 8%, while imports also shrank 5.2%.

Citing the chip shortage and historically low inventories, General Motors Co. said last week its auto sales in the U.S. fell roughly 33% in the third quarter.

Transportation-industry representatives say congestion at ports and labor shortages continue to create bottlenecks in cross-border trade.


Newsletter Sign-up

Real Time Economics

The latest economic news, analysis and data curated weekdays by WSJ’s Jeffrey Sparshott.


“We are witnessing unprecedented disruptions and global delays and shortages on essential goods including electronics, food, fuel and medical supplies,” the International Chamber of Shipping and other transportation industry groups wrote in a joint letter to the United Nations General Assembly last week. “Consumer demand is rising and the delays look set to worsen ahead of Christmas and continue into 2022.”

The U.S. trade deficit with China widened to $31.7 billion in August—the largest gap since July 2019—from $28.6 billion the prior month. Exports declined while imports continued to grow.

U.S. Trade Representative Katherine Tai said Monday that the U.S. will start conversations with China over its compliance with a bilateral trade agreement implemented last year during the Trump administration. China is far behind on its pledge to sharply increase imports of manufactured goods and other products from the U.S., analyses of trade data show.

After a brief pullback earlier in the summer, imports into the U.S. rebounded in August in line with stronger consumer demand. Personal spending on goods and services rose 0.8% in August following a 0.1% decline in July, the Commerce Department reported Friday. The increase came as personal income edged upward by 0.2% in August, reflecting wage gains and the federal government’s distribution of child tax credits.

The surplus in services trade continued to shrink in August, aiding the widening in the overall deficit. Pandemic-related restrictions pushed down spending by foreign visitors in the U.S., while travel spending by Americans overseas increased. A planned easing of limits on inbound travel in November is likely to push up the services surplus again, economists say.

—Anthony DeBarros contributed to this article.

Satellite images show the scale of the backlog at ports in California, as ongoing supply chain issues now threaten the holiday shopping season. WSJ’s Jennifer Smith explains what’s causing the holdups for ships and cargo. Photo: Planet Labs Inc

Write to Yuka Hayashi at yuka.hayashi@wsj.com

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:Business NewsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Where is Kamala Harris? Where is Kamala Harris?
Next Article PepsiCo Juggles Strong Demand, Supply-Chain Challenges PepsiCo Juggles Strong Demand, Supply-Chain Challenges

Editor's Pick

JPMorgan unveils its 2025 summer season studying record

JPMorgan unveils its 2025 summer season studying record

JPMorgan Chase Chairman and CEO Jamie Dimon on the significance of management abilities, deregulation coverage, power independence and the Federal…

By Editorial Board 4 Min Read
Overview: Hollywood star delivers an enormous shock at BottleRock Napa
Overview: Hollywood star delivers an enormous shock at BottleRock Napa

Followers turned out to see Kate Hudson at BottleRock Napa Valley on…

5 Min Read
Man shot and killed on one hundredth Avenue in Oakland on Saturday
Man shot and killed on one hundredth Avenue in Oakland on Saturday

Oakland police are investigating the loss of life of a person, 34,…

1 Min Read

Oponion

Vacation tree gentle controllers recalled for potential hearth danger

Vacation tree gentle controllers recalled for potential hearth danger

Try what's clicking on FoxBusiness.com. Vacation decorations maker Mr. Christmas…

December 16, 2024

Joe Biden, Democrats still short of goal on big-spending agenda after months of dealmaking

President Biden was making scant visible…

September 29, 2021

U.S. to Sell $56 Million in Cryptocurrency Seized in BitConnect Fraud Scheme

A judge agreed to a request…

November 17, 2021

Miniature Bible might be placed on show for company to learn the Christmas story

Pull out your magnifying glass when…

December 24, 2024

Toyota to donate $1 million to Trump inauguration

President-elect Trump’s inauguration is getting $1…

December 24, 2024

You Might Also Like

Omnispace, Gatehouse Satcom and Nordic Semiconductor Exhibit 5G NB-IoT Functionality over Non-Geostationary S-band Satellite tv for pc
Business

Omnispace, Gatehouse Satcom and Nordic Semiconductor Exhibit 5G NB-IoT Functionality over Non-Geostationary S-band Satellite tv for pc

Omnispace, Gatehouse Satcom, and Nordic Semiconductor, at the moment introduced the profitable demonstration of a 5G narrowband Web of Issues…

3 Min Read
74% of asset monitoring initiatives meet or exceed ROI expectations
Business

74% of asset monitoring initiatives meet or exceed ROI expectations

Companies adopting IoT asset monitoring options prioritize wonderful vendor help and seamless integration capabilities over an intensive checklist of options,…

2 Min Read
Iridium and Syniverse Companion to Convey Direct-to-Gadget Satellite tv for pc Connectivity to Cellular Community Operators Worldwide
Business

Iridium and Syniverse Companion to Convey Direct-to-Gadget Satellite tv for pc Connectivity to Cellular Community Operators Worldwide

Iridium Communications Inc., a number one supplier of world voice and knowledge satellite tv for pc communications, right now introduced…

3 Min Read
3 Modern Methods Healthcare Companies Use Tech To Enhance The Affected person Expertise
Business

3 Modern Methods Healthcare Companies Use Tech To Enhance The Affected person Expertise

The healthcare trade is among the largest proponents of know-how use all through the office. It’s an trade stuffed with…

4 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?