Economists had predicted the trade deficit would decline in March. Instead, it reached a new record.
Canada posted the largest trade deficit in our nation’s history in March, with the gap between imports and exports reaching $4.14 billion.
According to BNN Bloomberg, imports rose to $51.7 billion (a 6% increase), compared to a 3.7% increase in exports, which reached $47.6 billion:
“Purchases of cars and consumer goods were responsible for the jump in imports. The auto sector recorded an 8.3 per cent jump in imports, the strongest since 2011. Consumer goods imports jumped 7.7 per cent to a record high.”
A report on the trade numbers noted that “The figures represent a mixed picture for the trade sector. Policy makers will be reassured by a rise in exports and signs of dissipating railway bottlenecks, while the jump in imports implies trade acted as a major drag on first-quarter growth.”
That last line is important to consider: “trade acted as a major drag on first-quarter growth.”
The elites often try to tell us that trade deficits don’t matter, but common sense makes clear that it’s not sustainable to keep buying more from the rest of the world than we sell. It’s no coincidence that as our trade deficits continue, our fiscal deficit, federal debt, and consumer debt are surging as well.
Our country is increasingly living in a fantasy-land where overspending, and over-borrowing somehow has a happy ending, yet history has shown time and time again that ignoring economic reality comes with a serious price.