U.S. trade deficit drops as exports hit record high
Send a link to a friend
[May 03, 2018]
By Lucia Mutikani
The U.S. trade deficit narrowed sharply in
March as exports increased to a record high amid a surge in deliveries
of commercial aircraft and soybeans.
The Commerce Department said on Thursday the trade gap dropped 15.2
percent to $49.0 billion, the lowest level since September. Data for
February was revised slightly to show the trade gap widening to $57.7
billion, which was the highest level since October 2008, instead of the
previously reported $57.6 billion.
March's decline ended six straight monthly increases in the trade
deficit. Economists polled by Reuters had forecast the trade gap
narrowing to $50.0 billion in March.
The politically sensitive goods trade deficit with China dropped 11.6
percent to $25.9 billion, which will probably do little to ease tensions
between the United States and China.
U.S. President Donald Trump has threatened tariffs on up to $150 billion
worth of Chinese goods to punish Beijing over its joint-venture
requirements and other policies Washington says force American companies
to surrender their intellectual property to state-backed Chinese
competitors.
China, which denies it coerces such technology transfers, has threatened
retaliation in equal measure, including tariffs on U.S. soybeans and
aircraft.
Trump, who claims the United States is being taken advantage of by its
trading partners, has already imposed broad tariffs on imported solar
panels and large washing machines. He recently slapped 25 percent import
duties on steel and 10 percent on aluminum.
The deficit with Mexico vaulted 32.8 percent to a record $8.1 billion in
March. The U.S. had a $0.3 billion surplus with Canada in March.
When adjusted for inflation, the trade deficit dropped to $62.1 billion
from $69.0 billion in February. The government reported last week that
trade contributed 0.20 percentage point to the first quarter's 2.3
percent annualized growth pace.
[to top of second column] |
A plane is seen during
take off in New Jersey behind the Statue of Liberty in New York's
Harbor as seen from the Brooklyn borough of New York February 20,
2016. REUTERS/Brendan McDermid/File Photo
In March, exports of goods and services increased 2.0 percent to an all-time
high of $208.5 billion, lifted by a $1.9 billion increase in shipments of
commercial aircraft. There were also increases in exports of soybeans, corn and
crude oil. Real goods exports were the highest on record.
Exports to China jumped 26.3 percent in March.
Imports of goods and services fell 1.8 percent to $257.5 billion, in part as the
boost from royalties and broadcast license fees related to the Winter Olympics
faded. Imports of capital goods fell by $1.5 billion, weighed down by declines
in imports of computer accessories, telecommunications equipment and
semiconductors.
Imports of consumer goods decreased by $0.9 billion. Crude oil imports dropped
by $0.5 billion in March. Imports from China fell 2.1 percent in March.
(Reporting By Lucia Mutikani; Editing by Andrea Ricci)
((Lucia.Mutikani@thoms
onreuters.com; 1 202 898 8315; Reuters Messaging: lucia.mutikani.thomsonreuters.
com@reuters.net)
[© 2018 Thomson Reuters. All rights
reserved.] Copyright 2018 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|