Trade deficit soars as Americans buy Chinese cell phones, toys, TVs

[UpInArms]

http://www.signonsandiego.com/news/business/20041014-1324-economy.html

WASHINGTON – The trade deficit jumped to the second-highest level in history as surging demand for foreign oil swamped a small gain in U.S. exports, the government reported Thursday. America's trade gap with China hit an all-time high as retailers stocked up on cell phones, toys and televisions in preparation for Christmas sales.


The worse-than-expected trade performance in August – a deficit of $54 billion – represented a 6.9 percent widening from July's trade gap of $50.5 billion. The record monthly deficit was set in June at $55 billion.

Exports, helped by a rise in shipments of commercial aircraft and record foreign sales of American cars and auto parts, rose by a slight 0.1 percent to $96 billion in August.

However, this improvement was overwhelmed by a 2.5 percent surge in imports to a record $150.1 billion as America's foreign oil bill climbed to the highest level in history. The average price for crude oil jumped to a 23-year high of $36.37 per barrel.

<snip>

Even trade in services, normally America's strength in international markets, sank in August to a surplus of $3.4 billion, 19 percent below July and the smallest surplus since this trade series began in 1992. The big decline was blamed on U.S. television payments to broadcast the Olympic games.

...much more...

Mods: I believe that there are no other articles that tie in all of the deficit woes with the cheap imports that clog our world.

[phantom power]

1. high oil prices might eventually reduce the other imports

If oil stays high, and increases the cost of transportation, that might act like a de facto import tarrif. But only if transportation costs add enough additional cost to cheap foreign products.

[knitter4democracy]

2. Toys made in China

Has anyone else noticed that it's almost impossible to find any toys not made in China or in some sweatshop somewhere in any usual toy store? I have to order online or from good catalogs--and even then, I have to ask and dig a bit in order to find out where something's made.

What happened to us? We can't even make our own children's toys?! Wouldn't that be a good job for our out-of-work manufacturers? It's almost as bad as trying to find really American-made knitting yarn.

[Moderator]

3. Duplicate topic

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=904104

add this article to the previous post about this topic