US trade deficit increases to $71.2 billion in May

[Omaha Steve]

Source: AP

By MARTIN CRUTSINGER

WASHINGTON (AP) — The U.S. trade deficit widened in May as $71.2 billion as a small increase in exports was offset by a bigger rise in imports.

The Commerce Department reported Friday that the deficit rose 3.1% from the revised April deficit of $69.1 billion The U.S. trade deficit had hit a monthly record of $75 billion in March.

In May, exports of U.S. goods and services rose 0.6% to $206 billion. But that was offset by a 1.3% gain in imports which hit $277.3 billion.

Through the first five months of this year, the U.S. trade deficit totals $353.1 billion, up a sizable 45.8% from the deficit during the same period last year when Americans’ appetite for imported goods was being held back by the pandemic.



A man watches as the Warnow-Dolphin container ship sails to PortMiami, Thursday, April 29, 2021, in Miami Beach, Fla. The U.S. trade deficit widened in May as $71.2 billion as a small increase in exports was offset by a bigger rise in imports.The Commerce Department reported Friday that the deficit rose 3.1% from the revised April deficit of $69.1 billion The U.S. trade deficit had hit a monthly record of $75 billion in March. (AP Photo/Marta Lavandier)


Read more: https://apnews.com/article/global-trade-health-coronavirus-pandemic-business-ae1810686bbdfaa769d6de4a766158f8

[peppertree]

1. Merchandise deficit: $89.2 billion

https://www.census.gov/foreign-trade/Press-Release/current_press_release/ft900.pdf

Most countries report their trade balance in terms of merchandise trade - and the U.S. did for many years as well.

Until, sometime during the Bush regime, they started reporting on a 'good and services' basis (commonly known as the current account).

Why? Because the U.S. normally logs a significant services surplus (i.e. foreign debt payments, royalties, etc).

That's Karl Rove's doing: put the war off the books (a minus), and the services on the books (a plus).