Washington, D.C. – The United States goods and services trade deficit rose to $68.3 billion in January, increasing $1.1 billion from December’s deficit of $67.2 billion, the U.S. Census Bureau and the U.S. Bureau of Economic Analysis reported Wednesday.
The U.S. goods deficit with China hit $25.16 billion while the deficit with India soared to nearly $5 billion in January, marking an increase of $1.2 billion from the previous month.
Alliance for American Manufacturing Scott Paul said:
“The trade deficit remains unsustainably high. An overly strong dollar, one of the side effects of the Federal Reserve’s interest rate actions, continues to hamper export performance. Much attention has been focused on de-risking supply chains and moving production out of China. The record monthly trade deficit with India may be one indication that is partially underway, but the import totals from China are still massive.
“As we’ve seen from the policies of the Biden administration, global companies will respond to the right incentives to invest in American manufacturing. We’d be wise to do more of that.”