The consumer demand of the U.S. for goods and an easing of supply chain restrictions drove a
surge in imports in November 2021, pushing the trade deficit close to the record. Thus, demand for imports
outstripped the U.S. export by a significant amount, which leads the U.S. trade deficit in goods and
services.
American manufacturers sent fewer goods overseas in November 2021 than before, spending by
tourists as U.S. borders loosened Covid-19 restrictions for international travelers boosted export services.
According to the PNC Financial Services Group Economist said, “The trade deficit will likely stay high in
January due to the backlog of ships waiting to unload at U.S. ports and headwinds to tourism from
Omicron.” As backlogs at the U.S. ports showed signs of easing in the fall, helping boost imports, while
consumer spending was solid early in the holiday shopping season.
After collapsing during the pandemic, global trade has roared back, pushing the U.S. trade deficit
to record levels as the pandemic continues. In recent months, high demand and transportation and
delivery challenges, such as shortages of port and warehouse workers, have crimped goods trade. But
signs are mounting the supply chain disruptions are beginning to dissipate.|
Thus, factories in Europe and the U.S. reported a further easing of supply chain woes and related
cost increases as 2021 ended. However, the spread of Omicron worldwide threatens to worsen shortages
of labor and supplies.
