US Trade Deficit Facts

US Trade Deficit Facts

March 24, 2005

The current issue of the McKinsey Quarterly points out that a big piece of the trade deficit is from US companies’ activities abroad. Worth reading.

A silver lining in the US trade deficit.
The US current-account deficit is bigger than ever. This trade imbalance is prompting protectionists to call for restrictions on imports, but research by the McKinsey Global Institute shows that about one-third of it comes from US trade with US-owned subsidiaries abroad. Such trade may add to the deficit, but it also creates significant value for US customers, companies, and shareholders.

JR

John Rutledge

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