United States trade deficit jumps amid surging imports

US trade deficit

US Trade Deficit Jumped by 12.1% in 2017

Rising crude imports and a ballooning goods deficit with China, which hit its highest level on record at $375.2 billion, helped expand the trade gap, the Commerce Department reported.

The deficit in December increased by 5.3% to 53.1 billion Dollars.

Throughout his campaign and time in office, Trump has argued that he would wipe out deficits created by America's signing of bad trade deals, which he says have hurt workers and businesses to the benefit of the nation's top trading partners.

President Trump wants to reduce the trade deficit between the usa and China and Mexico, arguing that his "America First" trade policies, coupled with full employment and the massive tax cuts that went into effect in January will give the country equal footing with the rest of the world.

Imports from Mexico also hit a new record high. On the campaign, Trump was a vociferous critic of current US trade practices with China, but since he took office, he shifted his tone because he hopes the Chinese government will help reduce tensions with North Korea. "The first-year Trump jump in the US trade deficit adds urgency to the administration actually securing a NAFTA replacement deal that ends NAFTA's job outsourcing incentives and implementing a new China trade policy". Imports from China and Mexico hit record highs The year 2017 saw the US importing more foreign-made cars, computers, cell phones and other consumer goods, much of which were produced in China.

U.S. President-elect Donald Trump speaks at the USA Thank You Tour event at the Wisconsin State Fair Exposition Center in West Allis, Wisconsin, U.S., December 13, 2016.

"Right now, the same trade policy that Trump attacked ferociously and promised to speedily replace is still in place", said Lori Wallach, director and founder of Public Citizen's Global Trade Watch.

Trade looked set to subtract more than expected from fourth-quarter annualized gross domestic product, he said in an interview, making the Bank of Canada's forecast of 2.5 percent growth "much more hard to attain". Net exports subtracted 1.13 percentage points from gross domestic product growth, which registered an annualized rate of 2.6 percent in the October-December period. The trade deficit of the largest economy in the world is rising in 2017, mainly due to the strengthening of the economy.

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