U.S. Trade Deficit Breaks Record;$19.2 Billion Shortfall in November Revives Protectionist Push
The United States trade deficit swelled to a record $19.2 billion in November, reversing three months of improving deficits and renewing congressional threats to pass protectionist legislation this year.</br></br>The November figure assures that 1986 will be the worst trade year in U.S. history. For the first 11 months of 1986 the trade deficit-the difference between exports and imports-was $159.1 billion. The current record deficit of $148.5 billion was in 1985.</br></br>If the deficit continued in December at the same rate it did for the first 11 months, the deficit for 1986 would be $173.6 billion.</br></br>Economists said yesterday they were surprised by the enormous deterioration in the trade picture. They said the increase in the deficit was at least partly due to special factors such as the hoarding of imports by businesses trying to beat the elimination of lucrative tax breaks under the tax revision act, which went into effect today.</br></br>"There was a time when a $19 billion deficit was horrendous for one year," said Commerce Undersecretary Robert Ortner. "Now we have to get accustomed to thinking of it as being horrendous for one month."