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USA trade deficit rises on record imports from China
06 December 2017, 01:05 | Ross Houston
US trade gap broadens in October on all-time record imports
The trade deficit increased to the highest since January and was above expectations of a Reuters poll of economists who had predicted the October deficit would stand at $47.5 billion. USA exports are up 5.3 percent this year; a weaker dollar has made US goods less expensive overseas.
U.S. imports of goods and services rose to the highest on record in October, widening the trade gap to its highest level in nine months, according to government data released on Tuesday (Dec 5).
Good coming into the USA from China, Mexico and the European Union all hit record levels, which boosted the trade gap to $48.7 billion - from $44.9 billion in September- and is the highest since President Trump took office in January.
Imports hit a record $244.6 billion in October, and exports were unchanged at $195.9 billion.
Exports of basic and industrial chemical, plastic and rubber products gained 12.4 per cent, while metal and nonmetallic mineral products increased 4.5 per cent.
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Exports increased 2.7 per cent to $44.5 billion in October, following four consecutive monthly declines, as gains were made in nine of 11 sectors.
During his five-nation tour across Asia, the president promoted business deals in Japan, South Korea and China as ways to help lower trade deficits with major trading partners across the Pacific Rim.
Exports to China, meanwhile, were the highest in nearly four years, at US$13 billion.
The goods deficit with China increased from $34.6 billion in September to $35.2 billion in October.
The U.S. trade deficit with Canada increased from $300 million in September to $1.8 billion in October, with U.S. imports rising $1.4 billion-primarily crude oil-to $25.8 billion.
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