After falling from its peak of 5.7 percent in 2006 to 3.6 percent in 2019, the United States’ manufacturing trade deficit as a share of its GDP has risen to 5.3 percent in 2022 through June, its highest level since 2008 (5.5 percent).

Fact of the Week: The US Manufacturing Trade Deficit as a Share of GDP Through June Is at Its Highest Level Since 2008

Prior to last week’s progress toward an interim trade deal with China, the United States had repeatedly delayed the expansion of tariffs on Chinese goods to most finished products. This was out of concern that such an escalation would hit U.S. consumers harder than existing tariffs on the intermediate goods that serve as inputs for companies to make their final products.

Fact of the Week: A 10 Percent Reduction in Tariffs on Intermediate Goods Increases Productivity Growth by 1.9 Percent, an Impact 6.5 Times Greater Than the Same Reduction on Final Goods

The ICE U.S. Dollar Index, which measures the value of the dollar against a basket of other global currencies, increased 19.6 percent over the last 12 months and is at its highest level since May 2002. 

Fact of the Week: The US Dollar Is Up Almost 20% Relative to Other Major Currencies Over the Last Year

A report by the tech research company Digital Science found that, in 2019, 500,000 publications or 10 percent of the world’s total, related to the 17 sustainable development goals (SDGs) outlined by the United Nations.

Fact of the Week: The Share of Global Research Dedicated to U.N. Development Goals Tripled Over the Past 20 Years

A new study finds the U.S. share of global manufacturing will fall to 11 percent by 2030, while China’s will increase to 45 percent.

Fact of the Week: A New Study Finds the US Share of Global Manufacturing Will Fall to 11 Percent by 2030

The fall in the value-added of foreign inputs as a share of China’s gross exports reflects an increased reliance on domestic production of intermediate goods and services and a shift toward production for domestic consumption.

Fact of the Week: Foreign-Produced Content of Chinese Exports Fell From 21.9 Percent in 2008 to 17.2 Percent in 2018

That tariffs put a damper on R&D investments is straightforward: Firms absorb some of the increased input costs, reducing profits and thus the funds available to invest. But tariffs also undercut R&D at a much deeper level. By reducing the exposure firms face to foreign markets, tariffs limit the potential gains from innovation, thereby lowering the returns from investing in R&D.

Fact of the Week: Tariffs Would Reduce R&D Investment Returns in High-Tech Manufacturing by Up to 50 Percent

Fact of the Week: US R&D Is Estimated To Have Increased to $792 Billion in 2021

Across 13 Latin American countries that had protectionist policies in place in 2005, these policies had no effect on innovation, writes John Wu in Innovation Files.

Fact of the Week: Analysts Have Downgraded Global GDP Growth Projections for 2025 to 3.1 Percent

Related

Fact of the Week: The US Manufacturing Trade Deficit as a Share of GDP Through June Is at Its Highest Level Since 2008

Fact of the Week: A 10 Percent Reduction in Tariffs on Intermediate Goods Increases Productivity Growth by 1.9 Percent, an Impact 6.5 Times Greater Than the Same Reduction on Final Goods

Fact of the Week: The US Dollar Is Up Almost 20% Relative to Other Major Currencies Over the Last Year