Finance

US Trade Gap Widens 12% in December

Feb. 6, 2014

Industry group notes that the deficit represents a shrinking middle class.

WASHINGTON -- As exports slumped , the U.S. trade deficit widened sharply in December, government data released Thursday showed.

The trade gap rose to $38.7 billion in December, a 12% increase from November's upwardly revised $34.6 billion level, the Commerce Department said.

Exports tumbled 1.8% in December, to $191.3 billion, and imports edged up 0.3%, to $230.0 billion.

However overall the deficit declined to $471.5 billion in 2012 from $534. 7 billion in 2012.

Commenting on the trade balance Scott Paul, president of the Alliance for American Manufacturing (AAM), pointed out that the trade deficit is more than a number. “It represents a shrinking middle class, fewer good job opportunities, and further proof that our economic policies—including a lack of enforcement of existing trade laws—contribute to outsourcing.”

Paul addressed the U.S. trade deficit with China noting that “even our emerging energy trade advantage can’t mask the damage done by our record trade deficit with China. Since 2009, the trade deficit with China has risen by 40%.”

Last year the U.S. trade deficit with China hit $318.4 billion.

The group has called for President Obama to keep his promise to hold China accountable. “The White House last month said President Obama would use his pen and his phone to make progress on economic issues,” states Paul. “He could start today by signing an order to designate China as a currency manipulator. Then, he could call the Chinese leadership to demand an end to that practice, and secure an agreement on a plan to cut this deficit in half over the next three years.”

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today.

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.