US trade deficit soars to €484bn record
The US trade deficit soared to a record of €484bn last year as Americans’ appetite for all things foreign from crude oil to imported cars hit all-time highs.
The United States even rang up a deficit in farm goods as imports of wine, cheese and other food products hit a record.
The Commerce Department reported that the deficit for all of last year was 24.4% above the previous record, an imbalance of €389bn in 2003.
The sharp worsening of America’s performance in trade was certain to spark new political criticism of President George Bush’s economic policies.
Democrats contend that the administration has not done enough to crack down on unfair foreign trade practices.
These include China’s currency policy, which US manufacturers believe has deliberately undervalued the yuan by as much as 40%, giving Chinese companies a huge competitive advantage over US firms.
