UPDATE: Trump promised to shrink the trade deficit. Instead it exploded. [View all]

[BumRushDaShow]

Source: Washington Post



The Commerce Department said Wednesday that -- despite more than two years of President Trump’s “America First” policies -- the United States last year posted a $891.2 billion merchandise trade deficit, the largest in the nation’s 243-year history.

The trade gap with China also hit a record $419 billion, underscoring the stakes for the president’s bid to reach a deal with Chinese President Xi Jinping as soon as this month.

The department’s final 2018 trade report, which was delayed by the government shutdown, showed that the U.S. bought far more in foreign goods than it sold to customers in Europe, Asia, North America and Africa. The goods shortfall topped the 2006 record of $838.3 billion, set as the housing bubble was peaking, and marked the third consecutive year of rising deficits.

A broader measure of the nation’s trade performance, which includes the services sector, showed a narrower, but still large $621 billion deficit. That reflected a deterioration of more than $100 billion from the figure that Trump inherited from President Barack Obama.

It has been evident for months that the president was failing to shrink a trade gap that he calls “unsustainable” and that he says represents a massive transfer of wealth from Americans to foreigners. Over the past year, even as he imposed tariffs on foreign-made solar panels, washing machines, steel, aluminum and assorted goods from China, imports roared ahead of exports.


Read more: https://www.washingtonpost.com/business/economy/trump-promised-to-shrink-the-trade-deficit-instead-it-exploded/2019/03/05/35d3b1e0-3f8f-11e9-a0d3-1210e58a94cf_story.html

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Original article -

By David J. Lynch
March 6 at 8:32 AM

BREAKING NEWS: U.S. posted record-breaking $891.2 billion merchandise trade deficit in 2018, despite Trump’s ‘America First’ policies

President Trump’s tariffs and tough policies have failed to shrink a trade gap that he argues represents a massive transfer of wealth from Americans to foreigners. He begins his reelection drive with a core campaign promise unfulfilled — and with a recent flurry of economic research showing that his embrace of tariffs is damaging the U.S. economy.

This is a developing story and will be updated.

https://www.washingtonpost.com/business/economy/trump-promised-to-shrink-the-trade-deficit-instead-it-exploded/2019/03/05/35d3b1e0-3f8f-11e9-a0d3-1210e58a94cf_story.html?utm_term=.52ef91ac184d