Imports in February were stalled by labor negotiations at West Coast ports, bringing the US trade deficit to a more than 5 year low. This comes on the heels of more expensive American exports due to the dollar’s recent strength.
Imports will likely spike when we see a solution to the labor dispute and the holdup can be released. That said, energy imports have declined over the past couple of years, marking a more fundamental source for a shrinking trade deficit.
I wonder if there are any currency implications to the holdup. Does the market recognize that it is temporary? Or, could the due flood of imports ease the dollar’s strength?