Although new tariffs deficit jumped 19%, Trade imbalance rose to $621bn.
In December, US trade deficit hit a 10-year high dealing a blow to efforts of Trump to restrict imports with protectionist trade tariffs especially from China.
The gap between Chinese imports & goods US companies sell to China recorded $419bn. However, total deficit in goods jumped to $891bn.
The surplus in services trade wasn’t capable of preventing overall deficit from rising nearly 19% in December for 2018 to a decade-long high of $621bn.
As demands of American consumers on laptops, phones & computer accessories rise, analysts believe that trade gap was widen further which leaves Trump last decision is imposing tariffs.
Exports fell for a third month in a row & weakened as a result of a stronger dollar & slowing global demand which makes US-made goods less competitive on international market.
Chief market analyst, Chris Beauchamp believes that $1tn of Trump of tax cut besides higher government spending had increased imports & boosted domestic consumption. Foreign buyers were discouraged from purchasing US-made goods.
“Making a mockery of the White House’s push to reduce the trade deficit. The chances of a deal with China this month look a bit weaker now, while more trade conflict with Europe seems increasingly likely. The assumption now is that trade wars will intensify, and that growth will suffer as a result”
Today News – Trumps tariff war pushes US trade deficit to 10-year high The US trade deficit hit a 10-year high in December, dealing a blow to Donald Trump’s efforts to restrict imports, especially from China, with protectionist trade tariffs.
The protectionist trade policy of the White house put last year has worsened the trade deficit.
Tariffs that had been imposed by Trump on $250bn of goods imported from China include solar panels, steel, aluminum & washing machines provoked China to hit back with $110bn of American products include soybeans & other goods.
Earlier this month, imposing tariffs on $200bn of Chinese imports were delayed while talks continued between the two sides.
US has slapped duties on aluminum & steel made in EU & Trump has threatened to end trade treatment which allowed India to export $5.6bn of duty-free goods to US.
US imports from 60 countries hit a record $2.6tn last year.
“big team of people, very talented people, over in China right now, negotiating on the China deal.It’s going along very well. We’ll see what happens, but I think it’s going along very well. They’re showing us tremendous respect