The U.S. trade deficit in January hit the highest level in nearly five years.
The head of the White House National Trade Council, Peter Navarro wrote in the Wall Street Journal recently that the trade deficit hurts economic growth and could be a threat to national security.
The authors say prices are rising because of economic recovery, limited supply of homes for sale, and continued low mortgage interest rates.
Export gains were overwhelmed by a surge in imported cell phones and autos, along with rising costs for oil imports.
In a note to journalists, analysts at Wells Fargo Securities say growing exports and imports are also a sign of improving economies in the United States and key trading partners.
as informed in
Why Trump Shouldn’t Be So Worried About the Trade Deficit
Both during and after his campaign for president, Donald Trump was very focused on U.S. trade, and in particular on the fact that the country imports more than it exports, creating a net trade deficit.
“[A] trade deficit automatically implies that the country is saving less than it’s investing,” they point out.
Despite the fact that most economists view the trade balance as a statistic that has no inherent positive or negative value in itself, Trump plainly saw the negative trade figure as some sort of national failing.
In a recent post they explained the basics of national-level trade accounting and pointed out that for a country like the U.S., there are plenty of reasons to be thankful about a trade deficit, not alarmed.
If it implies that there is a current account deficit and, hence, foreigners are investing in your country, then also no.
collected by :John Locas