The US trade deficit hit another high in October, with imports outpacing exports by US$55.46 billion.
The 9 percent increase was higher than expected, and economists immediately blamed the twin pressures of rising imports and high oil prices.
Even the weakening dollar failed to stop the widening trade gap.
Economists had hoped that a falling dollar would strengthen US exports and at least stabilize Washington's trade deficit.
The Bush administration said on Tuesday that oil prices were a big factor in the poor numbers and stagnant foreign demand for American exports.
As proof of the impact of high oil prices, the US set a record US$7.2 billion trade deficit with the countries of OPEC in October.
The 9 percent increase from the September trade deficit of US$50.9 billion led economists to question how long the US can sustain this deficit and attract foreign investors to underwrite it. The annual current account deficit, which represents the difference between foreign trade and investment in the US, and trade and investment abroad, is a record annual rate of US$665 billion, or 5.7 percent of GDP in the second quarter of this year.
Economists and trade experts say that the US deserves a share of the blame, too.
"In large part, today's US trade deficits are made in Washington," Stephen Roach, the chief economist at Morgan Stanley, said in a research report. "Lacking in private saving, outsize US budget deficits are leading to ever-widening current account and trade deficits."
Higher oil prices were behind half of the US$4.6 billion increase in this month's trade deficit.
Ashraf Laidi, the chief currency analyst at MG Financial Group in New York, said "soaring oil imports reared their ugly head, affirming our long-established view that the trade deficit cannot be stabilized by a falling dollar alone, especially when rising oil prices are exacerbating imports."
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft