U.S. Immigration Business: According to the Detroit News, in the first half of this year, U.S. auto imports reached a new historical high, driven by a surge in auto production in lower-wage countries like Mexico, as well as a strong dollar hindering U.S. exports.
In June, the overall trade deficit in the U.S. rose by 7.1% to reach $43.8 billion. The U.S. Census Bureau reported on Wednesday that automobiles, including complete vehicles, parts, and engines, accounted for more than one-third of the trade deficit, with U.S. auto imports rising to $29.8 billion.
In the first half of this year, U.S. auto exports decreased by $3 billion to $74.8 billion. In June, auto exports remained flat at $12.6 billion, with only a $62 million increase.
In contrast, U.S. auto imports increased by $10.8 billion in the first half of this year, reaching $171.5 billion.
In the first half of this year, the total U.S. trade deficit in automobiles with Mexico – including parts, engines, and other vehicles – was $35 billion.
Global automakers have significantly increased production in Mexico and are opening new plants. Mexico is currently the seventh-largest automobile producer and the fourth-largest automobile exporter in the world.
In the first half of this year, the U.S. exported approximately $1 billion worth of automobiles to Japan, while Japan imported $25 billion worth of automobiles, trucks, and parts from the U.S.
Currently, the U.S. and Japan are engaged in free trade negotiations to make production more attractive for both countries.
The U.S. auto trade deficit has surged. In May, the U.S. imported $29.4 billion worth of automobiles, which is similar to July. In the first half of this year, the U.S. imported $171.5 billion worth of automobiles, an increase of $10.8 billion.
Auto imports have been steadily rising. In 2011, U.S. spending on auto imports was $254 billion; in 2012, it was $298 billion; in 2013, it was $309 billion; and in 2014, it was $328 billion. The auto trade deficit has also been continuously increasing: it was $156 billion in 2013 and $169 billion in 2014.