USA trade deficits hit record high following Trump tariff wars

07 March, 2019, 14:09 | Author: Mary Valdez
  • Open this

While Trump appears to be on the verge of a deal with China that will see it make some trade concessions and agree to buy significantly more United States agricultural product and energy, which might be regarded as a win, increased Chinese purchases of USA products will essentially cause a redirection of trade - and the trade deficits - unless the U.S. is able to greatly expand capacity and improve its export competitiveness.

Globally, the trade deficit jumped from $796 billion to $870 billion between 2017 and 2018, an increase of $74 billion.

China retaliated, and the simmering trade war roiled financial markets past year.

Weinstein said the President appears to be relying on a 2018 analysis of data from the 1990s, when the U.S. represented a larger share of the global economy and enjoyed more leverage over exporters in other countries.

"T$3 rade now looks set to be a more serious drag in the first quarter", Capital Economics wrote in a note.

Despite the "victory" in the coercive negotiations with Canada and Mexico that led to the re-writing of what used to be the North American Free Trade agreement, there was a $US19.8 billion deficit with Canada and a $US81.5 billion deficit with Mexico - the biggest deficits in a decade. The answer largely (though not exclusively) has to do with Trump's own economic policies.

The U.S. trade deficit ballooned in 2018 despite moves by the Trump administration over the past year to keep it down and renegotiate trade agreements. They reflect broader trends in the economy, including savings and investment rates. The previous trade deficit recrod, of $838.3 billion, was in 2006, under President George W. Bush, as the housing bubble peaked. We were at the tail end of the Great Recession then, and, because the economy was bad, Americans bought less stuff from overseas.

With the trade gap growing, analysts are concerned it could slow down US growth this year.

German Ambassador expelled from Venezuela after supporting 'interim President' Juan Guaido
Venezuela's President Nicolas Maduro , left, met with German ambassador to Venezuela Daniel Kriener, right, in September 2018. Breier said the State Department was "aware of and deeply concerned" by the reports of Weddle's detainment.

Freakish R Kelly interview with Gayle King
King also interviewed Kelly's two girlfriends, Joycelyn Savage and Azriel Clary , "and to my surprise, they were very angry". She noted, "I was never anxious he was going to hurt me". "I never thought he was going to hit me". "Why would I?" R.

Three Canadians playing Arnold Palmer Invitational
Since then, Woods has been among the stars who promised to keep supporting the tournament in honor of Palmer. He continued in a follow-up tweet: "I'd like to send my regrets to the Palmer family and the Orlando fans".

Trump and his supporters have cast the blame in part on the US Federal Reserve, arguing that its decisions to hike rates a year ago contributed to the strengthening of the dollar. Americans are importing far more from overseas than they are exporting-imports grew 7.5% while exports increased only 6.3%.

Both have weakened foreign demand for American goods and services.

Put another way, by Trump's own benchmark, the U.S. is 20% worse off than it was at the end of 2016, just before he took office.

He has picked trade wars the world over, with friends and foes alike. Auto tariffs would provoke retaliatory actions by the European Union, with unpleasant consequences for both sides and the global economy.

Trump hit roughly half of Chinese imports with taxes a year ago, a move created to kickstart trade negotiations with the goal of increasing exports to that country and stopping the forced turnover of US technology and theft of intellectual property.

The government reported last week that trade subtracted 0.22 percentage point from GDP growth in the fourth quarter. "Imports increased $217.7 billion, or 7.5 percent", the report reads. In a March 2 speech to a conservative political group, he called them "the greatest negotiating tool in the history of our country" and credited them with bringing trade partners such as China to the bargaining table.

On an annual basis, the trade gap widened 12.5%. There's reason to be skeptical, however, and not only because some of these objectives seem like fantasies.

Recommended:



Popular

Danish study debunks connection between vaccine and autism
Yet, many parents still fear vaccinating their children against these preventable diseases, and it is creating big risks. There's strong new evidence that a common childhood vaccine is safe.

Child star from 'School of Rock' caught stealing Florida guitars
The musician allegedly asked staff at the stores if he could test the instruments before walking out with them, according to TMZ . The kicker? He's been deadset busted four times over the past five weeks for stealing guitars and an amplifier.

China blocks some Canada canola shipments, Ottawa expresses concern
"We are compelled to take this legal action as a proper and last resort", Huawei Rotating Chairman Guo Ping said in a statement . Meng's arrest by Canadian authorities has given rise to increasing diplomatic tensions between Canada and China.

Missing dentist's body found stuffed in suitcase
Nithya said the last activity on her phone was detected in the Sydney CBD at 1.47pm on Sunday, according to her mobile provider. A Facebook page was set up soon after Dr Reddy went missing, calling for people to "help find Preethi Reddy ".

Conservatives target Ocasio-Cortez's 'Green New Deal' in NY billboards
A typical PAC has to disclose how the funds are used, including all campaign events, advertising, and donations to candidates. But while Ocasio-Cortez claimed that "none of this is whataboutism", not everyone seemed to be convinced by her reasoning.

Bugatti La Voiture Noire one-off revealed at the 2019 Geneva Motor Show
And with a price tag of $12.5 million or ₹ 87 crore (ex-showroom), it is the world's most expensive new vehicle to be sold ever. The Geneva Motor Show is always good for a jaw-dropping moment, and this year's belonged to French marque Bugatti.

Andrew Bogut to join Warriors for remainder of the season
Even after the Celtics handed them their worst loss in a decade on Tuesday at Oracle Arena, the Warriors sit atop the Western Conference.

After Williams falls and leaves, No. 5 UNC outlasts Clemson
Williams, 68, has been open about his bouts with vertigo, which causes dizzy spells in those who suffer from the condition. Against Boston College, Williams jerked his head while talking to a referee, which led to his collapse shortly after.

Michael Bloomberg bows out of Democratic presidential race
Bloomberg also expects to be heavily involved in the 2020 general election, organizing and funding opposition to Mr. Bloomberg had mulled running for president as a Democrat in 2020, before ultimately deciding against it.

HBO's 'Leaving Neverland' Documentary Draws Mixed Reviews From Viewers
He also had an Indian fort with like tepees so we would lay down sleeping and have snacks and have sexual relations there. This excellent coverage of the "court of public opinion" is by Roz Weston and Graeme O'Neill of ET Canada Live .