The U.S. trade deficit rose 9.6% in January, 2017, to the
highest level since 2012. The gap of $48.5 billion of exports exceeding imports
looks daunting, yet the story is more complex at the sector level.[1]
According to Neil Irwin of The New York Times, “What really matters is not
whether the trade deficit is rising or falling. What matters is why?”[2]
Distinguishing macro factors such as a strengthening dollar from sectoral strengths
and weaknesses is thus necessary.
The full essay is at "Disentangling a Worsening Trade Deficit."
1. Neil Irwin, “The
Huge January Trade Deficit Shows Trump’s Hard Job Ahead,” The New York Times, March 7, 2017.
2. Ibid.
The Port of Oakland (Source: Jim Wilson/NYT)
