US Trade Deficit Soars To Nine-Year High During Trump's First Year

Reuters

The imports rose 2.5% in December to a record $256.5 billion, driven by the higher imports of customer goods such as cellphones, vehicles and capital goods. Even though Trump administration has made the goal to narrow the trade gap through his "America First" trade policies, it is really hard to achieve when the domestic economy is expanding and the customers' appetite for foreign-made products is strong.

The US trade gap surged to its highest level in almost a decade during President Donald Trump's first year in office - more unwelcome economic news after Wall Street suffered historic losses, and setting up a test of confidence for his administration. Trump has promised to reduce the deficits with China and Mexico, and the administration is renegotiating the North American Free Trade Agreement with Canada and Mexico and is considering imposing trade sanctions on China. The fourth quarter was one of the worst; in December, the "trade deficit in goods and services rose to $53.1 billion, up from $50.4 billion in November and highest since October 2008", the AP reported. Imports set a record $2.9 trillion, swamping exports of $2.3 trillion, according to CTV News Canada. And he really wants to impose trade sanctions on China for the theft of US intellectual property. The president recently placed tariffs on imported solar panels and washing machines, sparking concern the US may prompt trade wars. Total US exports of goods and services in 2017 rose 5.5 percent to $2.3 trillion, their second highest level on record. Strong consumer demand drives imports higher, effectively exporting USA prosperity to China and other exporters. "Looking ahead, we expect the trade deficit to widen further in 2018", said Gregory Daco, chief USA economist at Oxford Economics.

Mnuchin said despite the recent declines the administration can take credit for double-digit increases since Trump's election in 2016, given its focus on policies to improve the economy's long-term performance. The deficit in goods with China jumped 8.1 percent hit a record $375 billion.

Related news:

Hot News

isis-killer-beheading-video-story-top England scrum-half Youngs in doubt for rest of 6 Nations
Feb 06, 2018 - 14:27
Italy thought they had hit back with a try from Boni, but his score was ruled out on video review for a forward pass by Allan. His record in charge of England is exceptional with Ireland , in last year's final game, the only team to defeat them.

isis-killer-beheading-video-story-top 4000-Year-Old Tomb Discovered in Egypt
Feb 06, 2018 - 14:25
Mostafa Al Waziri who led the archeological mission told CBC how Hetpet might also have another tomb In Giza western necropolis. The finding marks the first discovery to be announced in 2018, Ahram Online , an Egyptian news organization, reports.

isis-killer-beheading-video-story-top NFL Minute: Kirk Cousins' free agency effects on Colts offseason
Feb 06, 2018 - 14:18
Regarding the latter, there may be no free agent talked about more and pondered over than Redskins quarterback Kirk Cousins . We even get to address the QB controversy brought about by the Alex Smith trade, with Fake Trump labeling him "Sneaky Alex".

isis-killer-beheading-video-story-top At least two dead in USA train collision
Feb 05, 2018 - 06:16
Other passengers were bleeding. "It appears Amtrak was on the wrong track", SC governor Henry McMaster told a news conference. The NTSB said it was working to confirm that. "I thought it was a little odd ", Larkin said of the request.

isis-killer-beheading-video-story-top Fowler leads heading into final day in Phoenix
Feb 05, 2018 - 06:13
Berger had a bogey-free 65. "It's just a matter of time", Fowler said. "Mostly, it's just about just enjoying yourself". He looked set to claim the solo lead on Friday until he overcooked his chip shot at the par-four 17th for a soft bogey.

isis-killer-beheading-video-story-top US Missile Interceptor Test off the Hawaiian Coast Fails
Feb 04, 2018 - 01:17
The United States did successfully intercept a medium-range ballistic missile off the coast of Hawaii in an August 2017 test. This is the fifth test of the missile in general, and the third one in which it attempted to intercept another missile.

isis-killer-beheading-video-story-top Premier League sides 'will soon spend total of £2bn a season' - Deloitte
Feb 03, 2018 - 09:44
Manchester City spent £57 million on Athletic Bilbao defender Aymeric Laporte and Aubameyang signed for Arsenal for £56 million. Spending records in transfer windows appear to be getting broken all the time and this season has proved no different.

isis-killer-beheading-video-story-top Shocked Grandma Recalls Photo With Jay-Z and Beyonce
Feb 03, 2018 - 09:43
Stunned, Monaghan couldn't help but vocalize her thoughts in stating that she was certain no one would believe her story. But our favourite response is this, so on the money.

isis-killer-beheading-video-story-top United States warns of toxic-gas push in Syria
Feb 03, 2018 - 09:40
On Friday, Mattis said it was clear Syria has weaponized chlorine, but added that he doesn't have evidence of sarin use. A State Department report issued last week outlines the reported use of chemical weaponry in the region.

isis-killer-beheading-video-story-top DOJ, SEC Launch Investigation into Apple's iPhone Battery Fix
Feb 02, 2018 - 21:19
In December, Apple issued an apology for slowing older models and said it would discount replacement batteries for some handsets. That led to a huge internet freakout and accusations that Apple has been hobbling iPhones to trick users into buying new models.

isis-killer-beheading-video-story-top Fox Reportedly Nearing TV Rights Deal for NFL's Thursday Night Football Games
Feb 01, 2018 - 00:41
The top Fox broadcast team of Joe Buck and Troy Aikman will not call the TNF games, sources told Sports Business Daily . But Fox's interest - and the NFL's payday - illustrate why the package will remain a part of the league's offerings.

isis-killer-beheading-video-story-top Orca learns mimic human speech
Feb 01, 2018 - 00:37
They eat marine mammals such as seals, sea lions, and even whales, and are known to grab seals right off the ice. High-pitched, eerie and yet distinct, the sound of a voice calling the name " Amy " is unmistakable.

isis-killer-beheading-video-story-top Federal prosecutors seek to drop criminal charges against US Senator Robert Menendez
Feb 01, 2018 - 00:36
Mendendez' defense lawyers argued that the donations must be tied to specific actions by Menendez to be considered bribes. A lawyer for Menendez said the senator was "pleased and grateful" about the decision.

isis-killer-beheading-video-story-top Seller of ammo to Vegas shooter didn't know plan
Feb 01, 2018 - 00:33
The papers show that investigators found 23 rifles and a handgun in Paddock's 32nd-floor hotel suite and an adjoining room. He declined to provide additional details, saying he will answer questions at a news conference Friday with his attorney.

isis-killer-beheading-video-story-top Quiksilver CEO missing at sea off France
Feb 01, 2018 - 00:29
With a larger and stronger platform, we see many exciting opportunities for our employees, customers, suppliers, and athletes. Nearly three hours later, his 36ft sailboat - the Mascaret III - was found empty and washed up on the French Atlantic coast.