Washington ~ The US Bureau of Economic Analysis (BEA) released a report today that the US trade deficit rose yet again. Dollar overvaluation and the failure to deal with nationalistic economic strategies in Asia and Germany are the primary causes.
The BEA report stated:
The U.S. current-account deficit increased to $123.1 billion (preliminary) in the second quarter of 2017 from $113.5 billion (revised) in the first quarter of 2017, according to statistics released by the Bureau of Economic Analysis (BEA). The deficit increased to 2.6 percent of current-dollar gross domestic product (GDP) from 2.4 percent in the first quarter.
“The US dollar was overvalued by 25% in May of this year, devaluing US goods, services and labor in domestic and international markets,” said Michael Stumo, CEO of CPA. “Japan, Germany, China and South Korea continue exporting their overproduction and unemployment to deficit countries. The Trump Administration needs to de-link trade from foreign policy in Asia. It also needs to overcome Treasury Department resistance to moderating massive private capital inflows that drive the dollar too high and wages too low.”
About CPA: The Coalition for a Prosperous America is the nation’s premier organization working on the intersection of trade, jobs, tax and economic growth. We represent the interests of 2.7 million households through our agricultural, manufacturing and labor members.