Trade Deficit Up 1.8% in December, 27% in 2021…Wowzer

In stunning fashion, but no surprise to anyone, the trade deficit widened even further in December of 2021. The U.S. Census Bureau and the U.S. BEA reported the goods and services deficit increased to $80.7 Billion in December, up from the prior month of November at $79.3 Billion, reflecting a 1.8% increase.

Both exports and imports grew respective to November numbers, which is kind of unusual, seeing as how many major retailers had stockpiled for the holiday season ahead of time, amidst the supply chain fiasco that will go seemingly unsolved.

In the year 2021, exports increased $394.1 Billion, with imports increasing by $576.5 Billion. Mind you, this also comes at a time when China’s economy expanded 8.1%…BIG SHOCKER THERE. The most disturbing metric that the BEA reported was that the deficit with China jumped a whopping $6.0 Billion in December, to a total of $34.1 Billion for the month. Yikes.

The biggest imports increase in December was by far consumer goods, which increased $5.2 Billion in the month of December. A close second was automotive vehicles, which increased by $2.4 Billion which is also unusual, especially given the issue with semiconductor production felt round the world. And also as a total shocker to nobody, industrial supplies and materials decreased by $3.2 Billion in the month of December.

America putting up the double double right now: double digit trade deficit, and double digit national debt (did i mention that was in trillions of dollars?) double digit inflation would’ve made it the elusive triple double.