(RightWing.org) – The mechanisms that drive global economies are complex and difficult to predict, particularly in the wake of more than a year of hardships created by the largest global pandemic in over a century. With many industries operating at less than full capacity, supply and demand for numerous products and services have increasingly impacted global trade.
The US Department of Commerce issued its International Trade in Goods and Services report for March on Tuesday, May 4, 2021.
U.S. trade deficit hits record $74.4B in March https://t.co/evbyPSmlfN
— Finance and Commerce (@BusinessMN) May 5, 2021
The nation’s goods and services trade deficit rose to $74.4 billion in March, representing an increase of $3.9 billion from February’s figure. That number represented a deficit increase of 5.6%. US exports came in at $200 billion, showing a 6.6% increase. Imports reached $274.5 billion, indicating an increase of 6.3%.
Due to the dollar’s valuation, the United States spends more in imports than it takes in from exports, accounting for the $74.4 billion deficit.
According to Fox Business, the US economy is recovering at a faster pace than its trading partners. That fact, coupled with the recent direct stimulus payments, means Americans have more money to spend than other nations’ citizens, hence our lower exports and greater deficit.
Copyright 2021, RightWing.org