U.S. trade deficit drops 15%

Port workers in Fort Lauderdale Florida. Donald Trump has said reducing the deficit will protect US jobs

The 2018 first quarter goods trade deficit with China and with the world is significantly larger than figures for the first quarter of 2017 even as the March monthly goods deficit with China declined as USA exporters accelerated shipments to beat tariffs that may be imposed relating to the 301 action, which gave an extra boost to us exports overall this month.

The trade deficit with China, as President Donald Trump says has benefited from bad USA trade policy, fell 11 per cent to $25.9 billion in March.

The government's figures closely matched analysts' expectations and represented the largest one-month decline in the trade deficit in two years, Efe reported.

U.S. President Donald Trump has threatened tariffs on up to $150 billion worth of Chinese goods to punish Beijing over its joint-venture requirements and other policies Washington says force American companies to surrender their intellectual property to state-backed Chinese competitors. The unemployment rate is at a 17-year low of 4.1 percent, close to the Fed's forecast of 3.8 percent by the end of this year. With labor conditions tightening, wage growth is picking up. Given the failure of the Trans-Pacific Partnership to obtain majority support in Congress, such a major redo of the past USA trade agreement model is also necessary for a new pact to be approved by Congress.

Over the past three years, the worsening of the non-oil trade deficit has been comparable in magnitude to the worst part of the 2000s "China shock" period, reaching 3.5 percent of GDP between 2014 and 2017 compared to 3.6 percent of GDP between 2002 and 2005.

That outweighed growth in exports, which rose 3.7 per cent to $47.6-billion, their biggest gain in four months and their second-highest level on record.

Exports also showed broad strength, with nine of 11 sectors rising.

Meanwhile, imports from China led the increase with 26.6 percent, mainly on higher imports of computers and computer peripheral equipment and of communications and audio and video equipment. Crude oil imports dropped by $0.5 billion in March. "We are very happy to see that", said Peter Hall, chief economist at Export Development Canada.

Interesting enough the United States is also beginning to pull investments Canada once use to get as a recent report from RBC states that investments are leaving Canada "in real time" for the United States.

And, wheat exports rebounded in the month, up 52 percent, following a sharp decline in February, which coincided with rail transportation disruptions in Western Canada.

Related:

Comments

Latest news

Guantanamo detainee transferred to Saudi custody, 1st for Trump administration
In contrast, Trump pledged during his campaign to repopulate the prison, saying he wanted to "to load it up with some bad dudes". Al-Darbi was captured at the airport in Baku, Azerbaijan, in June 2002 and taken to the US base in Bagram, Afghanistan.

New Jersey's Mystery High School Pooper Turns Out To Be School Superintendent
A high school superintendent in New Jersey was caught in the act this week as he pooped on another high school's football field. The district said in the message that per state law, unpaid leave is taken in the face of indictments or tenure charges.

Why is May 4 known as Star Wars day?
Fans partake in it to celebrate the Star Wars film franchise and the rich science fiction universe it birthed over the years. When is Star Wars Day 2018? However, the first reference in pop culture to May the 4th be with you dates back to 1979.

Don't know that there would be a 'Deadpool 3', says Ryan Reynolds
However, that doesn't mean Reynolds is done playing Deadpool , nicknamed the Merc with a Mouth, on the big screen. Deadpool 2 hits theaters on May 18, with the addition of Josh Brolin and Zazie Beetz.

Other news