Economy

The US trade deficit decreased 1.7% past year to $ 616.8 billion

The US trade deficit decreased 1.7% past year to $ 616.8 billion”

Trump has pledged to pledge to alleviate the massive and persistent U.S. trade deficits, which he sees as a sign of economic weakness and the result of unilateral trade agreements that disadvantage USA exporters.

President Donald Trump, who has dubbed himself "the tariff man", has pledged to shrink the deficit by shutting out more unfairly traded imports and renegotiating free trade agreements. Data for November was revised to show the gap tightening to $43.7 billion instead of $43.1 billion as previously reported.

Both imports, which Trump has hit with tariffs, and U.S. exports, which have been hurt by other country's retaliatory tariffs, fell in 2019.

But the goods trade deficit with Mexico jumped to a record high of US$101.8 billion previous year.

In December, the overall trade gap widened 11.9% to $ 48.9 billion as exports increased 0.8% to $ 209.6 billion and imports increased 2.7% to $ 258.5 billion rose.

Excluding services, the U.S. deficit in goods fell by almost $20 billion to $866 billion past year, as imports of Chinese products hit by Trump's punitive tariffs dropped 17.6%, according to the report.

More news: Five New Data Centres Added to Oracle's Cloud Computing

The trade deficit dropped 1.7% to $616.8 billion a year ago, declining for the first time since 2013.

The Phase 1 agreement, signed on January 15 and taking effect on February 15, suspended a new round of USA tariffs in exchange for the Chinese purchases of agricultural, energy and manufactured goods and services. The deficit with the European Union also reached an all-time high of $177.9 billion.

Trade added nearly 1.5 percentage points to GDP growth in the fourth quarter, exceeding the 1.20 percentage points contribution from consumer spending, which accounts for more than two-thirds of USA economic activity. Imports of crude oil plunged 19.3% to $126.6 billion. "[Tariffs] increase costs for consumers, they make us less competitive [and] they take away money from shoe companies and retailers that could be invested in other capital investments".

Economists believe a 15% tariff on US$110 billion worth of Chinese goods that came into effect on Sept 1 had weighed on imports in the prior months. It tumbled 17.6% to US$345.6 billion in 2019. Imports decreased $12.5 billion or 0.4%.

"The trade war hit to business capex and especially the imposition of tariffs on an array of Chinese consumer goods on September 1 are likely to blame for the import collapse", Ian Shepherdson of Pantheon Macroeconomics said in an analysis.



Like this

loading...
loading...

Latest


05 February 2020
U.S. deploys 'more survivable' submarine-launched low-yield nuclear weapon
Navy has fielded the W76-2 low-yield submarine-launched ballistic missile (SLBM) warhead", Rood said in a statement. Last February the administration said it expected to have the new version ready for use by late 2019.

05 February 2020
Florida troopers find narcotics in bag labeled ‘Bag Full of Drugs’
A highway patrol trooper from Florida made the stop after observing a vehicle going 25 miles per hour over the limit on Saturday. Two drug traffickers used a graphic canvas pouch labeled in bold font, "BAG FULL OF DRUGS", which was, in fact, full of drugs.

05 February 2020
Atsu’s extra-time assist sends Newcastle United into FA Cup fifth round
Matty Longstaff, younger brother of teammate Sean, made his first-team debut against Manchester United in October and scored the winning goal.

05 February 2020
China coronavirus outbreak: All the latest updates
Most of the passengers will be taken by bus to a military facility where they will be held in quarantine for two weeks. It has since emerged that a Belgian woman who was on Sunday's flight tested positive for the virus.

05 February 2020
Jason Momoa's Super Bowl Commercial 2020: Goes Bald & Skinny for Rocket Mortgage!
A follow-up video, released to YouTube by Quicken Loans the company behind Rocket Mortgage , showed how the commercial was made . While another agreed: "The Jason Momoa Super Bowl advert for Rocket Mortgage has left me feeling WEIRD".

05 February 2020
Deontay Wilder could only smile regarding Tyson Fury-Anthony Joshua sparring talk
Wilder vs Fury 2: Where is it? "It only allows me to continue to keep the claim that I'm the baddest man in the planet". So that's what I think about him, when I hear his name".

05 February 2020
Indian women struggle to 103/9 against Australia
Debutant Annabel Sutherland scored 22* from 11 balls with four boundaries towards the end to take the game into the Super Over. The 29-year-old Perry shared small but important stands with Rachel Haynes and Jess Jonassen, doing the bulk of the scoring.

05 February 2020
Dubois has three points to help Blue Jackets defeat Canadiens
The Blue Jackets are 19-7-6 in Eastern Conference play. "It didn't happen tonight but there was belief in here between periods". They are 6th in power play (23.9%) and 24th in penalty kill (77.5%). "It certainly wasn't played as a 0-0 game by either team".

05 February 2020
Johnson comes under fire from sacked climate conference boss
Chief executive Mike Hawes said that "accelerating an already very challenging ambition will take more than industry investment". Gas and diesel vehicles still make up 90 percent of sales in Britain, though demand for electric cars has grown.

05 February 2020
Xiaomi could launch its Redmi 9, Redmi Note 9 series soon
While the secondary sensor of 48 megapixels, the third sensor will be of 12 megapixels and the fourth will be 8 megapixels. The device will really complement the processor of flagship level, but expect it powerful camera 108 MP is not necessary.