U.S. Trade Deficit Widens
CBJ — The U.S. trade deficit widened in August to levels not recorded over the past 12 years.
Statistics compiled by the U.S. Department of Commerce reveal the American trade gap reached $63.6 billion during the eighth month of the year.
While exports were up 8% to $168 billion, imports were also up 10% to $232 billion and thus the overall deficit increase.
U.S. President Donald Trump has often complained that America gets taken advantage of by other countries. Whether someone is a supporter or detractor of Trump, there is no denying the trade deficit remains and is something that should be a concern. In response, Trump has reacted by imposing harsh tariffs and import bans designed to making it harder and more expensive to import products, and try to incentivize companies to build items in America. Canada is one of those countries that has been hit by the economic shrapnel, notably with such products as steel and aluminum to name just two.
Trump’s trade policy does not seem to have succeeded in slowing the flow of imports. The U.S. trade deficit with China ballooned 11.5% to $31.6 billion in July, while the goods deficit with Mexico hit a record high of $10.6 billion. In other words, the tariffs have had no positive impact in reversing the trade deficit trend.