Economic news

U.S. trade deficit is the highest since October 2008

The trade deficit of the United States reached its highest for a month and a year since the past contraction, which emphasizes the contradiction in President Trump’s aim to lessen the gap and bring about robust economic expansion at the same time.

The deficit rose by 5.3% in the last month of 2017 to $53.1 bln, which was more than had been forecasted, and it is the highest figure since October 2008, as the country’s imports exceeded exports, data by Commerce Department revealed yesterday.

This movement may continue in 2018. Strong consumer expenditure and business investment, in case they sustain the stock-market fall that just took place, will increase demand for goods from abroad. And though global growth and low U.S. currency may be beneficial for exports, Trump’s attempts to find more advantageous conditions for trade with other countries are still going on, and the reduction of taxes may lead to further expansion of the deficit.

In the run-up to the election Trump promised to create equal conditions for U.S. workers. The president recently said in the initial State of the Union address he was going to amend unfavourable trade deals and agree on new ones. He also imposed tariffs on foreign solar panels and washing machines, raising worries over possible trade wars.


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