The US trade deficit peaked in 10 years in October, driven by an increase in imports and a decline in exports of US products.
The deficit of the so-called trade balance is the gap that exists between what a country imports and exports. In the case of the United States, the importation of goods and services increased by 1.7% in October compared to the previous month, which translated into $ 55.5 billion in October, according to reports from the Department of Commerce on Thursday.
It is about a major trade deficit from October 2008, when the country was going through the great crisis.
These negative data are relevant because President Donald Trump he made the trade deficit in one of his flags campaign that has continued to shake from the White House. To counter it, Trump has imposed tariffs on imports, which, according to these figures, seems to have worsened the gap in foreign trade..
Imports grew by 0.2% in October, while exports decreased by 0.1%.
Among the factors that have influenced the trade balance are the decline in exports of engines and engines for aviation and that of soybean exports. Imports of products of foreign production of several categories ranging from vehicles and auto parts increased in October.
The trade deficit in the United States is an old problem, although it now seems to show sustained increases.
In an attempt to fill this gap, the Trump government he applied billions of dollars to products manufactured abroad, such as solar panels and metals such as steel and aluminum. This measure The affected countries responded with similar measures in retaliation for products manufactured in the United States.
The United States is contorted in a trade war with China for months when both governments impose tariff packages on various products in retaliation, something that has generated imbalances and uncertainty in international markets.
At the G20 summit held in Argentina a few days ago, US and Chinese officials agreed on a sort of "truce" not to impose new rates for 90 days while trying to negotiate.
In the first 10 months of 2018, the total trade deficit in the United States increased by 11.4% compared to the same period of 2017.
Consumption and unemployment
Historically, the United States imports more goods than it exports. Many economists attribute this chronic "failure" of decades to Americans who consume more than they produce compared to the rest of the world's economies.
Low unemployment and economic growth have encouraged spending and driven demand for imports while Americans and businesses spend and invest more. This strong consumption probably at least partly compensates for the impact of the tariffs imposed by Trump.
And while job creation has been growing steadily for several years, data released this Thursday by the National Employment Report (which is a private report and not published monthly by the US Department of Labor) showed that private employers hired less than expected in November, something that could mean a moderation in rhythm.
Although Huawei said it did not know the reasons for the arrest, reports indicate that it could be connected to the alleged violations of the company to the sanctions imposed by the United States to Iran or the fact that members of the United States Congress They accuse the Chinese company of being a threat to national security because their cell phones have the technology to spy on US soil.
That commercial truce discussed between the United States and China in Argentina a few days later, then, could be affected or enter a new point of tension in this case.
This nervousness in international trade has manifested itself on Wall Street, where the Dow Jones index, which agglomerates the financial behavior of 30 large US-based companies, has shown significant losses in recent days. While this Thursday the markets opened with more losses, the prices of many stocks are unstable.
In the photos: among the protocol errors and disagreements, the G20 summit took place in Argentina