Technology Products Account for 61% of U.S. September Trade Deficit

The U.S. trade deficit in computers, peripherals and semiconductors reached $64 billion in September, accounting for approximately 61% of the country’s $105 billion overall trade deficit, according to a November 4 analysis by James Knightley, ING’s chief international economist for the United States.

Imports of those products totaled $87 billion for the month, compared with roughly $20 billion a month less than two years earlier. Knightley linked the increase to demand for equipment destined for U.S. data centers.

“Only three years ago, the US was a net exporter of tech products!” he wrote.

The findings qualify the economic benefits of the technology investment boom. Knightley argues that imported equipment offsets much of the contribution that technology spending makes to U.S. gross domestic product, while benefiting overseas suppliers, particularly South Korea and Taiwan.