U.S. Trade Deficit

U.S Trade Deficit
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When a country imports more goods and services than it exports, it experiences trade deficits. Statistics show that the U.S trade deficit in 2015 was $531.5 billion with an increase of $23.2 billion from the previous year. It has been the largest in the world since 1975. The goods imported in the United States include automobiles, petroleum, and cell phones while its exports comprise of food and commercial aircraft. There are dangers associated with running a trade deficit for any country over the long term as it ruins and weakens the economy (Amadeo, 2016). The state acquires goods and services through debt financing which is detrimental to the United State’s economy over an extended period, and it is risky since it can be terminated.
Moreover, any country with high levels of deficit destroys its economy through outsourcing of jobs, loss of competitiveness and decline in the standards of living. High debt levels indicate high amounts of imports compared to exports. This further leads to losing of expertise and competitiveness for U.S companies. Bilateral agreements among nations should address the trade deficits in the country. High exports in a country translate to expansion in countries firms, better living standards for citizens and high competitiveness thus having a better economy (Moran, 2015).
Insights into the US balance of payments show that the country imports more goods than it exports thus creating a deficit in the balance of payments.

Currently, the country runs a deficit current and financial account. The state has invested massively in the production of capital goods, industrial supplies, and consumer goods. In the foreseeable future, the country forecasts a surplus in the balance of payments that would offset its deficit. Moreover, the country has a high competitive edge in the provision of services as it exports more services through banking, travel and intellectual property management. The current surplus in the supply of services offsets the deficit in goods.
The government, private sectors, and other regulatory authorities have roles in the stabilization of the economy. The country should limit the production of goods that are core causes of the trade deficits such as consumer property and autos. Moreover, it should reduce its dependency on the foreign oil through development of new oil shale.
References
Amadeo, K. (2016). How the US Trade Deficit Hurts the Economy. The Balance. Retrieved 14 November 2016, from https://www.thebalance.com/u-s-trade-deficit-causes-effects-trade-partners-3306276
Moran, T. (2015). What Impact Will TPP Have on the US Trade Deficit?. PIIE. Retrieved 14 November 2016, from https://piie.com/blogs/trade-investment-policy-watch/what-impact-will-tpp-have-us-trade-deficit