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US trade deficits with Mexico and Japan in goods hit decade high
US trade deficits in goods with Mexico and Japan hit the highest levels in March in almost a decade, though the nation's trade gap overall was virtually unchanged, according to MarketWatch of San Francisco.
The overall deficit dipped 0.1 per cent to US$43.7 billion in March to reach a five-month low, the Commerce Department said. Economists polled by MarketWatch had forecast a $44.5 billion gap.
Exports slid 0.9 per cent to $191 billion, largely reflecting fewer shipments of pharmaceutical drugs and American-made cars. Imports edged down 0.7 per cent to $234.7 billion.
The Trump administration has made slashing the trade deficit one of its priorities, particularly the large gaps with China and Mexico. Yet these deficits are the byproduct of major economic changes in the US and its trading partners over a long period that won't be eradicated easily or quickly.
The trade gap with Mexico in goods climbed 22 per cent to $7 billion in March as imports set a record. That's the biggest deficit with the southern neighbour since November 2007, a month before the start of the Great Recession.
The US trade deficit in goods with Japan, meanwhile, leaped 55 per cent to $7.2 billion to mark the highest level since April 2008.
Mexico and Japan are both big suppliers to the US of autos and parts, whose imports soared in March.
The trade deficit has long been a drag on the official scorecard for the US economy, known as gross domestic product. Yet it's been relatively stable over the past few years.
On the bright side, an improved global economy is stoking demand for US exports, while Americans buoyed by an nearly eight-year-old expansion are more able to afford imports.
The overall deficit dipped 0.1 per cent to US$43.7 billion in March to reach a five-month low, the Commerce Department said. Economists polled by MarketWatch had forecast a $44.5 billion gap.
Exports slid 0.9 per cent to $191 billion, largely reflecting fewer shipments of pharmaceutical drugs and American-made cars. Imports edged down 0.7 per cent to $234.7 billion.
The Trump administration has made slashing the trade deficit one of its priorities, particularly the large gaps with China and Mexico. Yet these deficits are the byproduct of major economic changes in the US and its trading partners over a long period that won't be eradicated easily or quickly.
The trade gap with Mexico in goods climbed 22 per cent to $7 billion in March as imports set a record. That's the biggest deficit with the southern neighbour since November 2007, a month before the start of the Great Recession.
The US trade deficit in goods with Japan, meanwhile, leaped 55 per cent to $7.2 billion to mark the highest level since April 2008.
Mexico and Japan are both big suppliers to the US of autos and parts, whose imports soared in March.
The trade deficit has long been a drag on the official scorecard for the US economy, known as gross domestic product. Yet it's been relatively stable over the past few years.
On the bright side, an improved global economy is stoking demand for US exports, while Americans buoyed by an nearly eight-year-old expansion are more able to afford imports.
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