Tag: Foreign trade of the United States

U.S. trade deficit with China and Mexico is growing

U.S. trade deficit with China and Mexico is growing

President Trump’s most hated number is getting bigger.
Trump often cites the U.S. trade deficit as a sign that America is losing to China, Mexico and other countries on trade.
He uses it to justify renegotiating trade deals and slapping tariffs on other countries’ products.
But so far this year, it’s only growing.
And the gap with Trump’s two favorite rhetorical trade targets, Mexico and China, is getting bigger.
The overall trade deficit with Mexico is up 11% this year, and the deficit with China is up 7%.
It means American businesses and consumers bought more goods and services from Mexico or China than those countries’ consumers bought from American businesses.
When the U.S. economy was growing 4% a year in the late 1990s, the trade deficit was ballooning.
Unemployment is 4.1%, the lowest since 2000.
Exports are up 5%.