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U.S. Posts Record Annual Trade Deficit

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jmyrlefuller:
by Paul Kiernan · March 6, 2019

The U.S. posted its widest monthly trade gap since 2008 in December and a record annual deficit in goods as sturdy economic growth underpinned higher spending by American consumers and businesses.

The international trade deficit in goods and services widened 19% in December from the prior month to a seasonally adjusted $59.8 billion, the Commerce Department said Wednesday. Economists surveyed by The Wall Street Journal had expected a $57.3 billion gap.

Over the course of 2018, Mr. Trump imposed tariffs on a range of goods that the U.S. imports from other countries, particularly China, in hopes of giving American producers a competitive edge. He publicly lambasted companies that outsourced jobs, renegotiated pacts with major U.S. trade partners like Mexico, Canada and South Korea, and rankled longtime European allies by deeming their steel and aluminum exports a threat to national security.

Still, the trade gap swelled 12% from 2017 to $621 billion.

Highlighting the limitations of Mr. Trump’s trade policies, the goods deficit widened most with China, the U.S.’s largest commercial partner and the main focus of White House efforts.

(excerpt)

https://www.wsj.com/articles/december-2018-trade-data-from-u-s-commerce-department-11551877494

ABX:
Something people don't understand around the trade deficit hyperbole and propaganda- wealthier nations will always have a deficit with those less wealthy. We consume more than we produce, and that isn't necessarily a bad thing.

I have a trade deficit with my grocery store. Does that mean I need to stop using them and start my own farm and ranch or is it my time value is such it is better spent in other areas than lower return production?


--- Quote ---WASHINGTON—The U.S. posted its widest monthly trade gap since 2008 in December and a record annual deficit in goods as sturdy economic growth underpinned higher spending by American consumers...

....The international trade deficit in goods and services widened 19% in December from the prior month to a seasonally adjusted $59.8 billion, the Commerce Department said Wednesday. Economists surveyed by The Wall Street Journal had expected a $57.3 billion gap.....

https://www.wsj.com/articles/december-2018-trade-data-from-u-s-commerce-department-11551877494


--- End quote ---

Mod2:
Topics merged.

Hoodat:
Gee, if only someone had warned us that this would happen when tariffs are raised.

jmyrlefuller:

--- Quote from: ABX on March 06, 2019, 04:52:40 pm ---I have a trade deficit with my grocery store. Does that mean I need to stop using them and start my own farm and ranch or is it my time value is such it is better spent in other areas than lower return production?

--- End quote ---
If you follow that model, you also have to factor in that you have a trade surplus with your employer, more than enough to cover your trade deficit with the grocery store and other expenses.

The U.S. does not have an overall trade surplus. So not only does it have a trade deficit with the grocery store, it has a trade deficit with everyone else around them, losing money to each one. Eventually we'll run out of money or resources to trade.

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