The trade deficit is expected to trim overall economic growth by around one-half percentage point this year.
WASHINGTON – The U.S. trade deficit jumped in January to the highest level in nearly five years as a flood of mobile phones and other consumer products widened America’s trade gap with China.
White House trade adviser Peter Navarro, a long-time critic of China’s trade practices, told an economists’ group on Monday that reducing America’s trade deficits would deliver stronger economic growth and improve national security.
The result underscores the challenges facing President Donald Trump in fulfilling a campaign pledge to reduce America’s trade deficits.
The trade deficit is the difference between imports and exports.
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Oil imports lift U.S. trade deficit to near five-year high
Nevertheless, the wider trade deficit suggests trade could again weigh on economic growth in the first quarter.
When adjusted for inflation, the trade deficit rose to $65.3 billion from $62.0 billion in December.
Exports to China dropped 13.4 percent, leaving the politically sensitive U.S.-China trade deficit up 12.8 percent at $31.3 billion.
The nation’s trade deficit with Mexico fell 10.1 percent to its lowest level since July 2015.
They were supported by shipments of industrial supplies and materials, which hit their highest level in two years.
collected by :John Locas