MAPI says U.S. trade deficit in manufactures soared in 2015
The U.S. manufactures trade picture continued to dim in 2015,especially when compared with China, causing significant job decreases.
In the report, from the MAPI Foundation, the research affiliate of the Manufacturers Alliance for Productivity and Innovation, Ernest Preeg, Ph.D., MAPI Foundation senior advisor for international trade and finance, notes that the U.S. deficit in manufactured goods increased by 16%, or $89 billion, in 2015 compared with 2014. Preeg estimates a trade-related job loss of 600,000 American manufacturing jobs. This is on top of 400,000 job losses in 2014, according to Preeg's estimates.
Meanwhile, the Chinese trade surplus in manufactures was up 5%, or $48 billion, on a year-over-year basis. Preeg maintains these data significantly understate the actual growth in the surplus.
"Because of over-invoicing of imports to circumvent restrictions on capital outflow, the actual surplus totaled $1.1 trillion," he said.
Sixty percent of the global U.S. deficit, or $387 billion, was with China. Three Asian TPP participants—Japan, Malaysia, and Vietnam—recorded a deficit of $132 billion, or 20% of the global deficit. U.S. imports from Vietnam were $34 billion, or nine times larger than the $4 billion of U.S. exports to Vietnam.
The four principal EU trading partners that the report analyzes show a sharp distinction between the three members of the eurozone—Germany, France, and Italy—with a U.S. deficit of $110 billion, of which $73 billion was with Germany, and the non-eurozone United Kingdom, with only a $2 billion deficit.
"This reflects the undervalued euro to the dollar over the past several years for price-sensitive manufactures," Preeg said.
INDUSTRIAL SUPPLY MAGAZINE
The March/April issue of Industrial Supply magazine features an in-depth cover story about Joyce Lansdale and Vallen. Plus, we're featuring articles by contributing writers Dirk Beveridge, Frank Hurtte, and David Kahle, as well as interviews with numerous product and distribution industry experts.
