The trade deficit for the US fell by over 4.7% to $52.5 billion in September. The country recorded a surplus in petroleum in many years. But the rise in global tariffs and slowdown in the world economy imports and exports declined.
Although fewer cars were imported the exports declined as well due to tariffs in many countries. The import of mobile phones, toys, and games but it also exported less food and beverage items abroad.
In August the trade deficit was slightly wider at $55.04 billion. The petroleum surplus of $252 million was the first time since 1978 but if exports could have been increased the surplus could have been even more as oil imports had been reduced considerably. This probably hints at low production of petroleum in recent years in the US.
The trade gap with China narrowed from $ 100 million to $31.6 billion. Exports to China reduced by $800 million and imports from the Asian trade rivals reduced to $1 billion. The major fall in numbers is indicative of the ongoing fierce trade war between the two major economies of the world. But it looks like the worst part was over with the end of the September quarter and that both the countries are looking to settle the matter.
Last month the Trump administration announced tariffs on aircraft, industrial and agricultural products it imports from the European countries due to a decision by the World Trade Organisation in a long-running aircraft subsidy case. The European Union may also import tariffs for subsidies given to Boeing for sales in Europe from next year.
Overall exports fell by 0.9% to $206 billion. Export of capital goods increased by $800 million. Import of automobiles fell by the largest margin to $1.1 billion. Inflation-adjusted goods trade deficit stood at $82.6 billion down by $3.1 billion.
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