Beijing’s economic success remains tied to U.S. market access.
Washington, D.C. — The United States remains a market very open to imports, trade data released by the Census Bureau on Thursday shows. It’s an advantage that Treasury Secretary Janet Yellen should press as she enters discussions with Beijing’s senior leadership on Friday about their nation’s overcapacity, the Alliance for American Manufacturing urges.
“As Secretary Yellen meets with Chinese economic leaders, it’s important for Beijing to receive the message that there’s no more business as usual from the United States. We will no longer look the other way at massive industrial overcapacity and unfair trade practices,” Alliance for American Manufacturing President Scott Paul said. “To this end, the U.S. has a lot of market leverage.”
The United States real goods trade deficit rose by $1 billion or 1.2% in February, the U.S. Census Bureau reported Thursday.
“While we seek to bolster domestic production, the U.S. still absorbs more than $3 trillion worth of imported goods annually,” Alliance for American Manufacturing President Scott Paul said. “Trade data released today confirms that we still have very highly monthly global and bilateral goods trade deficits.”
The U.S. goods trade deficit with China was $19.9 billion in February, but trade data shows that China is increasingly exploiting Mexico’s trade relationship with the U.S. to dodge American duties and tariffs. In February, the U.S. trade deficit with Mexico hit $13.5 billion.
“The goods deficit with Mexico continues to grow as China makes more factory investments there to take advantage of the terms of the USMCA,” Alliance for American Manufacturing President Scott Paul said. “The Biden Administration should augment and maintain Section 301 tariffs on Chinese imports, ensure China doesn’t benefit from investments made under the IRA, CHIPS Act, and infrastructure laws, and close the door on Chinese auto imports — no matter the country of origin — before they swamp our autoworkers.”
The Alliance for American Manufacturing recently issued a report that uncovers how Chinese autos could seriously compromise U.S. national security and economic stability if allowed to enter the U.S. market. Alliance for American Manufacturing President Scott Paul is available for interview.