U.S. Trade Deficit Reaches 10-Year High

The U.S. trade deficit jumped to a 10-year high in October as soybean exports fell and consumer goods imports rose to an all-time high, suggesting Trump's tariff measures to close the trade gap were likely ineffective.

Other data showed that private employers hired fewer workers than expected in November, indicating moderation in employment growth. This was backed up by another report showing a slight decline in the number of Americans who filed for jobless benefits last week.


The reports added to weak housing and business spending on hardware data, suggesting a slowdown in economic growth. Concerns about the health of the economy have sparked a revival in financial markets in recent days.

The Commerce Department said the trade deficit widened 1.7% to $ 55.5 billion, the highest since October 2008. The trade gap has now widened for five straight months. September data was revised to show that the deficit widened to $ 54.6 billion, up from the previously reported $ 54.0 billion. USA.

The deficit in trade in politically sensitive goods with China rose 7.1 percent to a record $ 43.1 billion in October.

The United States is locked in a brutal trade war with China. Washington imposed tariffs on Chinese imports of $ 250 billion to enforce concessions on a list of requirements that would change the terms of trade between the two countries.

China has responded with import duties on US goods, including soybeans. President Donald Trump has long campaigned against China's trade surplus with the United States and accused Beijing of not playing fair in trade.

In addition to tariffs on Chinese goods, Washington has cut tariffs on steel and aluminum imports this year. On Saturday, Trump and Chinese President Xi Jinping agreed to suspend additional tariffs for 90 days while they negotiate a deal to end the trade dispute.

Economists had forecast the overall trade deficit to widen to $ 55.0 billion in October. Adjusted for inflation, the merchandise trade deficit increased in October to $ 87.9 billion from $ 87.2 billion. USA in September. The so-called real trade deficit is above the third quarter average.

The proceeds in the economy for the period from July to September amounted to 1.91 percentage points. Growth estimates for the fourth quarter are about 2.8 percent year on year. In the third quarter, the economy grew 3.5 percent.

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