New Trade Data Shows Soaring August Deficit in Wake of China’s Devaluation: AAM Statement

Tags Trade

Washington, D.C. – The Commerce Department released the latest monthly U.S. trade figures Tuesday. The overall monthly U.S. international goods and services trade deficit increased 16 percent in August to $48.3 billion, from $41.8 billion in July, revised. Exports dropped 2 percent and imports rose 1.2 percent in July.

Said Alliance for American Manufacturing President Scott Paul:

"Our monthly trade deficit with China surged to $35 billion in August, the same month in which China devalued the yuan. It’s no coincidence that manufacturing layoffs and factory closures have been announced at a more rapid pace these days: We simply aren’t competing on a level playing field.

“Until American workers and businesses can combat currency manipulation and ensure that countries like China honor all of their trade commitments, expect this to be the norm.

“The good news is that there are opportunities to make progress in the coming days. Congress has a bill to strengthen trade enforcement and combat currency manipulation in conference, but it has stalled. All indications are that the newly announced TPP won’t include enforceable measures against currency manipulation, but Congress could insist on them as a condition to approve the TPP. Let’s hope that these bipartisan efforts get moving again."

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