US trade deficit for goods reached record $891B in 2018

by Garry Watts March 8, 2019, 0:45
US trade deficit for goods reached record $891B in 2018

The Trump administration said Wednesday that the United States trade deficit in goods skyrocketed to $891.2 billion previous year, the highest deficit in the country's history.

The U.S. Commerce Department issued its final report Wednesday on the trade gap for 2018. The president clearly obsesses about the trade deficit, but would he really prefer that the USA economy not be humming along with both low inflation and also record low unemployment rates both overall and for just about every demographic group, even those demographic groups that solidly vote Democrat? The U.S. trade deficit, whose supposedly disgusting, disgraceful size Trump ran against in 2016, is now effectively his.

There are a few takeaways from this news, including that trade was probably a bigger drag on growth last year than previously forecast.

President Donald Trump is pursuing a protectionist trade agenda to shield US manufacturing from what he says is unfair foreign competition.

Trump has made the trade deficit a focus of his economic foreign policy and frequently mentions it when discussing worldwide trade.

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. That happened despite the new barriers to trade raised by the Trump administration. Trump asked China to abolish tariffs on U.S. agricultural products earlier this month.

The president has previously called the trade gap "unsustainable". Beijing's longstanding policy of subsidizing its own businesses and charges that it illicitly obtains US technology remain key obstacles.

There are also some broader macro-economic influences at play, not the least of which is a weak savings rate in the United States as well as the role the USA dollar plays as the world's reserve currency.

Trump plans to scrap preferential trade status for India
The total India-US trade was $126.2 billion in 2017, with a $27.3 billion deficit for the US, according to the USTR. Trade Representative Robert Lighthizer announced that India and Turkey would lose their GSP status within 60 days.

"The risk could be more to the downside, but on the other hand this would take away some certainty and that is good for companies looking to invest", said Sebastien Page, head of global multi-asset strategy at T. Rowe Price in Baltimore.

President Trump's America First policies are not having their intended effect. A few months back, he imposed a 10 percent tariff on an additional $200 billion and said that number would rise to 25 percent on January 1st if China did not agree to USA trade demands.

As trade talks with China advance, Trump has noticed the market gains that followed each sign of progress, said the people, who requested anonymity to discuss internal deliberations. Their research also revealed that workers in many Republican-leaning counties suffered the most economically from Trump's trade disputes. Trump is trying to reach a new trade deal with China and hopes to strike an agreement with President Xi Jinping in the coming weeks, but the stakes could not be higher.

"Trade wars are good, and easy to win", Trump said.

Cellphone imports increased $0.6 billion.

"We compute that tradeable real wages fall the most in heavily GOP counties because of the [trade] war", the study found.

News broke this week that Trump intends to essentially revoke preferential treatment on certain Turkish and Indian goods received when imported into the US market, drawing criticism from both countries and potentially opening American exporters up to additional hurdles when trying to reach consumers in those countries.

Another is that other countries have levied their own retaliatory tariffs on our own products - most famously, red-state goods such as soybeans and bourbon.

Recommended News


TOP News

Opposition adds air strike to meet agenda
Secondary reports citing unnamed official Indian sources have noted that targets outside of the camp at Balakot were targeted too. Indian Foreign Secretary Vijay Gokhale said "a very large number" of JeM rebels were killed, without specifying any number.

Phillies, Harper agree to 13-year, $330M deal
However, Harper's main priority was getting the longest contract possible. "Bryce wanted one city for the rest of his career". I don't want to explain the joke and I don't even think it's terribly good, but it caught a lot of attention on Twitter .

Game Of Thrones Season 8 Official Trailer Teases An Epic Finale
And, based on what we've learned so far of the upcoming final season , the producers are looking to meet the demand for action. The first trailer for Game of Thrones Season 8 is finally here and you're going to want to watch it as soon as possible.

‘Voice’ singer Janice Freeman dead at 33
It's truly sad to lose Freeman's impressive vocal talents so soon; she was just 33 years old at the time of her passing yesterday. Cyrus, 26, shared a sweet tribute to Freeman on her Instagram Sunday with a picture of a rainbow poking out above the trees.

Donald Dossier: How Cohen's Reveal Reduces the Risk of Impeachment
Cohen says Weisselberg decided that reimbursements to Cohen should be spread out over 12 months to "hide what the payment was". Trump criticized the timing of the hearing saying it should not have been happened while he was on an important trip.

Diplomats shun Venezuelan envoy's speech to United Nations rights body
Secretary-General Antonio Guterres to help ensure there is a free, fair and credible presidential election with global observers. A resolution needs nine votes in favour and no vetoes by Russia, China, France, Britain and the United States to pass.

Former Trump attorney turns over Russian Federation documents to U.S. House committee
BuzzFeed reported January 18 that Trump directed Cohen to lie to Congress about the timeline of the project. But the implication of CNN's report is that Trump's lawyers potentially directed Cohen to lie to Congress.

Pablo Zabaleta hopes Man City can edge Liverpool to Premier League title
He said: "We started the game with a lack of concentration and then we conceded goals from set-pieces that we could easily avoid". Of course, now with Nemanja (Matic) and Ander (Herrera) injured, there'll be more chances for Jimmy.

Ernesto Valverde: Barcelona Did Not Play A 'Well-Rounded Game'
It was a hard blow", Madrid coach Santiago Solari said. "We didn't take our chances and they took theirs". Here is how Twitter reacted after Real were crushed 3-0 by Barcelona in the Copa Del Rey semi-finals.

Saved from Pakistani mob, downed Indian pilot becomes face of Kashmir crisis
While the Pakistani jet landed in Pakistani territory, India's MiG 21 bison aircraft was shot down by the Pakistani Air Force. On Wednesday, security forces killed two Jaish militants in a gun battle, Indian police said .