[ad_1]
This drop follows five consecutive months of growth in the trade deficit.
The value of US exports fell in November due to falling oil prices. But the decline in the value of imported goods was even more important, with a drop of 3.6%.
"It is likely that the increase in tariffs on imports from China is partly responsible for this decline," wrote Ian Shepherdson, economist Chief at Pantheon Macroeconomics.
Trump began applying tariffs on Chinese products in July, after instituting duties on foreign imports of steel and aluminum beginning in March. But imports remained strong until October. This may be due, in part, to US companies that have been scrambling to stockpile their stock before the rates come into effect, Shepherdson said.
A number of factors affect trade. Last year 's federal tax cuts have helped reinvest more money in the pockets of Americans, increasing the demand for imports even though they are more expensive. Meanwhile, a slowdown in global growth and a strong dollar could weigh on exports.
The November decline did not reverse the trend of the year. The trade deficit has increased more than 10% in the first eleven months of 2018, said Wednesday's report.
The report was delayed by the partial closure of the 35-day government, which affected the Department of Commerce.
Source link
