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: Verstappen: 'Maybe God is with Hamilton but he's not God'

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
Greg Olsen to take first free agent visits with Redskins, Bills
The three-time Pro Bowler owns franchise tight end records for catches and receiving yards. The Carolina Panthers released the veteran tight end on Monday, per the transaction wire.

05 February 2020
Five New Data Centres Added to Oracle's Cloud Computing
Oracle is the modern platform for retail. "We march toward the ultimate goal of giving you a fully autonomous cloud". Oracle didn't have a great start to it cloud business which saw the likes of Amazon and Microsoft taking the lead.

05 February 2020
Massive avalanche hits rescue team on Turkish mountain
At least five people were killed in an avalanche in Van on February 4, with two people still missing. At least five people were killed in an avalanche in Van on Tuesday, with two people still missing .

05 February 2020
Chinese Central Bank to Pump Billions Into Markets Amid Coronavirus Fears
As of Monday afternoon, Chinese authorities had reported more than 17,000 infections by the virus and at least 361 deaths. Economists have warned that the outbreak will add to downside risks for China's economy in the first half of this year.

05 February 2020
Tamim Iqbal, Soumya Sarkar in Bangladesh squad for 1st Test vs Pakistan
Pakistan have called back all-rounders Faheem Ashraf and Bilal Asif for the first Test against Bangladesh in Rawalpindi. India now lead the championship with 360 points followed by Australia (296), England (146) and Pakistan (80).

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
Lesotho’s First Lady Turns Herself In For Questioning Over Murder
But his current wife vanished when the police called her in to testify, prompting the issuing of an arrest warrant. The premier didn't specify when he would resign, saying only it would occur "when all is in order".

05 February 2020
United Kingdom tells citizens to leave China over coronavirus fears
The British Foreign Office also said that it would be recalling some staff and dependents from the British Embassy and consulates. The Department of Health said on Monday that 326 United Kingdom tests for coronavirus have concluded, of which 324 are negative.

05 February 2020
First death from coronavirus outside of China confirmed
Three new cases of coronavirus have been identified in Califonia, bringing the national total to 11, according to Reuters. In Beijing, the Xiaotangshan Hospital built in 2003 for SARS is being renovated by construction workers.

05 February 2020
State of the Union address: Trump snubs Nancy Pelosi's handshake
The survival of a child born at 21 weeks. "A service member's reunion with his family ", the White House said in a tweet. He called the speech the greatest State of the Union to be given in the House chamber.