[ad_1]
WASHINGTON – The United States imported a record amount of goods in September, while the trade deficit with China reached its highest level ever, despite intense efforts by the Trump administration to close the trade deficit.
The deficit of foreign trade of goods and services increased of 1.3% compared to the previous month to reach 54 billion dollars in September, announced Friday the Department of Commerce. The skyrocketing of overseas products helped to widen the gap as the value of imported goods soared to $ 218 billion, the highest level ever recorded. At the same time, imports from China recovered, widening the trade deficit to $ 40.2 billion, a new record.
In order to reduce the trade deficit, the Trump administration has imposed tariffs on billions of dollars of Chinese products and on product categories such as steel and solar panels from China and other countries. Foreign countries have imposed retaliatory duties on products made in the United States. Domestic mill activity was affected and metal prices increased this year, reducing manufacturers' margins.
In his discussions on trade, President Donald Trump has always distinguished China, but the trade gap with other countries has also widened; the deficit with Russia in September was the highest since May 2013.
"For China in particular, any reduction in imports will take time because of the logistics of changing supply chains," said Kathy Bostjancic, chief economist at the US financial market at Oxford Economics.
Total imports and exports increased by 1.5% in September compared to the previous month. Domestic buyers increased their purchases of foreign-made capital goods, including computers and aircraft engines, as well as consumer goods, including cell phones and mobile phones. toys. At the same time, Americans were using more services from abroad, such as transportation and courier services, although the United States generally has a modest trade surplus for services.
Analysts expect the deficit to continue widening in the coming months. The major world economies that would typically buy US exports are beginning to show signs of fatigue; economic growth in the euro area has recently returned to its lowest level in four years. Add to that a strong dollar and tariffs on some US-made products, and US products will seem more expensive for foreign buyers already experiencing difficult economic prospects.
At the same time, imports from foreign countries are likely to be supported by optimistic domestic demand, according to Bostjancic. Low unemployment, rising wages and strong economic growth have led to spending and imports by US consumers and businesses.
Historically, the United States imports more goods than they export, but has a small trade surplus for services. Economists attribute the chronic trade deficit that the United States has faced for decades to Americans who consume more than they produce relative to the rest of the world economy.
To be sure, international trade data can be volatile from month to month. However, in the first nine months of 2018, the overall trade deficit increased by 10% in September compared to the same period in 2017.
The trade deficit weighed on the calculation of gross domestic product growth in the third quarter, following the surge in exports of soya exports, which reinforced the measure in the second quarter. Macroeconomic Advisers, a forecast company, expects growth to slow in the fourth quarter to an annual rate of 2.6%, compared with growth above 3% recorded earlier in 2018.
Write to Sharon Nunn at [email protected]
Source link
