The United States’ perennial trade deficit, for which in the past a $50-55 billion deficit in any given month was extraordinarily high, reached $82.5 billion in August, a picture showing the rest of the economies of the world even more badly collapsed than that of America. While U.S. imports have not grown significantly, its major exports have dropped sharply. There is a kind “2020 recession race” of virtually all major economies, those of Europe, Japan, Brazil, India, Mexico, Canada, Russia, and so forth. All are contracting still worse than the United States’ estimated 4-5% 2020 decline.
Other factors are that those nations have provided a lower volume of household relief than the United States; and that China’s economy, which is achieving some low growth (projected at about 2% for the year), has recovered manufacturing and exports, so far, largely without any corresponding consumption recovery.
Some details: Boeing aircraft exports were 4 in August 2020, 11 in August 2019; Caterpillar third-quarter sales were 20% lower than 2019; tool-makers’ exports are about 25% lower than in 2019; the chemical industry’s exports are 16% lower than 2019, according to the American Chemistry Council.
