Tags: US | Economy | Trade | Gap

Trade Gap Grows to $54B as Deficit With China Hits Record High $40.2B

imports versus exports, on a metal see-saw, more imports, less exports, leading to trade deficit
(Artistashmita/Dreamstime)

Friday, 02 November 2018 08:49 AM

The U.S. trade deficit rose to a seven-month high in September as imports surged to a record high amid strong domestic demand, offsetting a rebound in exports.

The Commerce Department said on Friday the trade gap increased 1.3 percent to $54.0 billion, widening for a fourth straight month. Data for August was revised to show the trade deficit rising to $53.3 billion instead of the previously reported $53.2 billion.

The trade deficit continues to deteriorate despite the Trump administration’s protectionist trade policy, which has left the United States locked in a bitter trade war with China as well as tit-for-tat tariffs with other trade partners, including the European Union, Canada and Mexico.

The politically sensitive goods trade deficit with China jumped 4.3 percent to a record high of $40.2 billion in September. Economists polled by Reuters had forecast the overall trade deficit rising to $53.6 billion in September.

When adjusted for inflation, the goods trade gap increased to an all-time high of $87.0 billion in September from $86.3 billion in August.

The government reported last week that the trade deficit subtracted 1.78 percentage points from gross domestic product in the third quarter. That was the most since the second quarter of 1985 and reversed the 1.22 percentage points contribution in the April-June period.

In September, imports of goods and services increased 1.5 percent to $266.6 billion, an all-time high. Imports of capital goods such as telecommunications equipment, civilian aircraft engines and computers were the highest on record.

There were also increases in imports of toys, cell phones, apparel and household goods.

Exports of goods and services rose 1.5 percent to $212.6 billion in September. Exports were lifted by shipments of industrial supplies and materials, which were the highest on record. Soybean exports decreased by $0.7 billion in September.

© 2019 Thomson/Reuters. All rights reserved.

   
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Economy
Record imports expanded the U.S. trade deficit for the fourth straight month in September, as the politically sensitive trade deficit in goods with China hit a record.
US, Economy, Trade, Gap
298
2018-49-02
Friday, 02 November 2018 08:49 AM
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