In a blow to Trump, America’s trade deficit hit record US$891b

Trump dealt blow as US trade deficit jumps

-China trade relationship can work in Trump's favor: there are simply far more Chinese goods coming into the U.S.to hit with tariffs than there are American goods flowing into China that can be hit with retaliatory charges. The December gap jumped from the prior month to US$59.8 billion, also a 10-year high and wider than the median estimate of economists.

In December alone, the imbalance in trade, which represents the difference between the values of imported goods and services and the value of the country's sales overseas, jumped almost 19 percent to a seasonally adjusted $59.8 billion.

While Trump frequently cites the deficit as evidence of the failure of his predecessors' trade policies - even though most economists don't dwell on the indicator - the gap has increased by US$119 billion during his two years as president. Although the United States has imposed tariffs of 10 to 25 percent on $250 billion in imports from China (about half of total USA imports from that country), China has played its "ace-in-the-hole" by allowing it's currency to fall by roughly 10 percent against the dollar.

Trump appears to be on the verge of doubling down on his tariff strategy, with reports that the US Commerce Department has, conveniently, determined that imports of European autos represent a threat to US national security, the same pretext the administration used to slap tariffs on Canada's aluminium exports.

"The widening trade balance in December is a blow to U.S. trade policy, Bloomberg economists Tim Mahedy and Carl Riccadonna said". Those lower costs have indeed contributed to the loss of USA factories to foreign countries and devastated vast swaths of the industrial Midwest.

A trade deficit occurs when a nation's imports exceed its exports. "The administration's fiscal policies have helped to boost the trade deficit". The trade gap for the year therefore reached $621 billion (£472.5 billion). While the United States and China are poised to negotiate a deal to end their trade dispute, the proposed deal amounts "much ado about nothing much", as Paul Krugman puts it. The U.S.is also pushing China to open its markets in services and other sectors.

He's wrong about trade deficits reflecting weakness.

The US is now locked in a trade battle with China over what it claims are unfair trade practices, resulting in tit-for-tat tariff increases on each others' goods.

This took place at the same time as growth in the rest of the world in 2018 slowed markedly, which led to an increase in the U.S. trade gap. Economists disagree about whether or not such a deficit is good or bad, since more importing could be an indicator of a healthy economy and consumers with more disposable income.

The Fed said slowing global growth and the government shutdown weighed on the United States economy at the start of the year but that it continued to grow.

A ship loaded with containers is pictured at Yusen Terminals (YTI) on Terminal Island at the Port of Los Angeles in Los Angeles, California, U.S., January 30, 2019.

In its relationship with China, a bigger problem for the US economy than trade deficits is the widespread suspicion that Beijing steals intellectual property and requires American companies that operate there to turn over technology secrets - two issues at the heart of the administration's negotiations with Beijing. Tariffs and counter-tariffs make goods more expensive. The goods shortfall topped the 2006 record of US$838.3 billion, set as the housing bubble was peaking, and marked the third consecutive year of rising deficits.

There were also notable declines in US shipments to China of frozen fish and American-made cars, among the other products hit by higher tariffs.

"We find that the USA tariffs were nearly completely passed through into USA domestic prices, so that the entire incidence of the tariffs fell on domestic consumers and importers up to now, with no impact so far on the prices received by foreign exporters", according to the report. There is a strong likelihood Trump might walk away from the ongoing trade talks with China.

Related News:

  • Kate's ex advice: run

    Kate's ex advice: run

    Kate , meanwhile, was previously married to Underworld director Len Wiseman from 2004 to 2016. As for Kate's obvious love for younger men, MGK says it's because younger guys "rock".
    Conservatives target Ocasio-Cortez's 'Green New Deal' in NY  billboards

    Conservatives target Ocasio-Cortez's 'Green New Deal' in NY billboards

    Asked if the complaint shows she was connected to "dark money" during the campaign , Ocasio-Cortez replied, "No, no". One of the thoughts among pundits was that the moment Bernie Sanders entered the race, the very popular Rep.

    Trump fetes North Dakota State with fast food

    North Dakota State, a dominant program in the NCAA's second highest level of play, made its visit with the government reopened. But it appears that ordering massive amounts of fast food for college-aged kids is now a thing.
  • French 'voices of Isis' killed in strikes on Syria

    French 'voices of Isis' killed in strikes on Syria

    Many of the ISIS fighters left inside the town are "foreign recruits, intent on fighting to the end", according to Kurdistan 24 . An SDF spokesman said thousands had been evacuated from the crumbling jihadist bastion since his force dialled down its advance.
    Trump says Cohen hearing may have hurt North Korea results

    Trump says Cohen hearing may have hurt North Korea results

    But the president never specifically but the blame on Kim, which many lawmakers and Warmbier's family said the blame is to fall. They described it as an effort to support diplomacy aimed at resolving the North Korean nuclear crisis.
    House Democrats announce broad probe into allegations against Trump

    House Democrats announce broad probe into allegations against Trump

    Mueller is investigating Russian intervention in the 2016 election and whether Trump's campaign conspired with Russia. Trump and Putin met privately in Helsinki in July for more than two hours with only interpreters present.
  • Prime minister’s Regina trip cancelled in favour of private meetings in Ottawa

    Prime minister’s Regina trip cancelled in favour of private meetings in Ottawa

    If convicted criminally, the Montreal-based company would be banned from receiving any federal government business for a decade. Since Wilson-Raybould's testimony, opposition parties have called for Wernick, who is supposed to be non-partisan, to be fired.
    Rodgers does not rule out Celtic return

    Rodgers does not rule out Celtic return

    His goals and all round play will need to be replaced, but we can look forward to a big cash windfall when he does leave. So the fact of the matter was someone else was handed the reins and they were going to be afforded the time.
    Paul to vote against Trump

    Paul to vote against Trump

    Border wall prototypes stand in San Diego near the Mexico-U.S. border, seen from Tijuana, Mexico. The president is invoking other powers to transfer an additional $3.1bn to construction.
  • EA is investigating why Anthem is crashing PS4s

    EA is investigating why Anthem is crashing PS4s

    PC owners and Xbox users have also reported similar issues, with the game suddenly forcing a hard reset. Overall, it's pretty damning for Anthem , especially as Bioware hasn't addressed the complaints yet.
    Joey Logano wins Pennzoil 400

    Joey Logano wins Pennzoil 400

    After Harvick pitted, Logano inherited the lead until he did the same on lap 50, leading to Daniel Suárez enjoying time in first. Rounding out the top five were Brad Keselowski in second, Kyle Busch in third, Kevin Harvick in fourth and Kurt Busch in fifth.
    Missing Carrico sisters survived 44 hours in woods by using LEAVES

    Missing Carrico sisters survived 44 hours in woods by using LEAVES

    Teams from Mendocino County, Napa County, Del Norte County, State Parks, National Guard, the U.S. He said the firefighters who found the girls had followed their boot prints.


Most liked

Lakers forward Kuzma out for up to a week
"He's got some time to get better there, and this [missing the playoffs] is not going to suddenly undo all of that good work". He heads into Tuesday's action averaging 18.8 points and 5.6 rebounds while shooting at a robust 47 percent from the field.

Lakers to Put LeBron James on Minutes Restriction
In February, he averaged 20.7 points per game on 50 percent shooting from the field. They also missed three free throws after technical fouls.

Associated Press Former Trump campaign manager Paul Manafort sentenced to 47 months
Judge Ellis said he believed a sentence in the guideline range of 19 to 24 years would be "excessive", according to CNN . He also admitted his guilt in the 10 counts in Virginia on which the jury could not reach a unanimous verdict.

Twitter reacts as Joachim Low confirms new plans for Germany
Ozil, of course, walked away from the German national side after the World Cup citing the "racism and disrespect" he has faced in Germany over his Turkish roots.

United Kingdom would scrap 80-90 percent of tariffs after no-deal Brexit
He tweeted that much of the reporting had been inaccurate, and "complex and detailed negotiations can not be conducted in public". He declined to go into any specifics about the kind of legally binding changes Cox was trying to secure.

R. Kelly Headed Back to Jail After Failing to Pay Child Support
The 52-year-old singer is accused in Chicago of sexually abusing four females dating back to 1998, including three underage girls. Timothy and Jonjelyn Savage say it's been two years since they heard from their daughter, 23-year-old Joycelyn Savage .

Trudeau: Crisis deepens as second minister quits
February 13 - The House of Commons justice committee debates whether it should start its own review into the SNC-Lavalin affair. Trudeau asked after taking to the podium, adjusting the microphone to his height and making sure the auto-prompter was working.

4 potential Raiders draft picks who dominated the NFL Scouting Combine
Metcalf stunned scouts and onlookers with blazing speed at a frame of 6-foot-3 and 228 pounds and a body fat percentage of 1.6, running an insane time of 4.33.

'Everything has gone', says Carvajal after Madrid crash out of Champions League
VAR took centre stage for four long minutes during Real Madrid's humiliating defeat to Ajax at the Bernabeu on Wednesday night. Unlike his predecessor, Solari has been given plenty of time to figure out solutions to Real Madrid's problems.

Top House Democrats Demand Information on All Trump-Putin Meetings, Phone Calls
The committee voted February 26 to authorize its first round of subpoenas, which were sent to Attorney General William P. Among them were aides to President Trump and his campaign, members of his family, business associates and others.

Democrat seeks action against colleague over anti-Semitism allegations
Omar, when it came time to face the cameras, she suddenly had nothing to say about her recent anti-Semitic comments. But Democrats haven't joined the chorus of GOP calls for Omar's removal from the committee.

Adviser Says Trump 'Gave Nothing Away' in North Korea Talks
The maneuvers have been a perennial target of North Korean fury - condemned by Pyongyang as provocative rehearsals for war. Clapper said they're important for South Korean defense.

Facebook doesn't allow phone number 'look up' opt-out
Then click "Who can look you up using the phone number you provided?" and change the dropdown box from "Everyone" to "Friends". A recent report by Tech Crunch states that phone numbers linked to Facebook accounts could be used to look up profiles.

Tip: How to enable Dark Mode on Facebook Messenger
To unlock it, you'll need to send a crescent moon emoji in any Messenger chat which will then prompt you to enable it. Dark mode switches the app's white background to black, making it easier to use in darker environments.

House Democrats Launch Massive Trump Investigation, Demanding Info from 81 People
The stepped-up oversight could eventually lead to, or even serve in place of, impeachment proceedings. Asked if he believed Trump obstructed justice, Nadler said, "Yes, I do".