The consumer demand of the U.S. for
goods and an easing of supply chain
restrictions drove a
surge in
imports in November 2021,Β 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, βThe 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.β 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.
