Intermediate goods aren't accounted for because it's complicated and difficult to figure out. It matters because it misrepresents the trade deficit, which is a

Intermediate goods aren't accounted for because it's complicated and difficult to figure out. It matters because it misrepresents the trade deficit, which is a sensitive political issue. As the article points out, the real U.S. trade deficit with China may actually be 30% lower while the trade deficit with Japan may actually be 25% higher.