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5 January 2018
 |
| Trade Gap (The Total Investment & Insurance Solutions) |
The U.S. trade deficit rose to $50.5 billion in November, the largest
imbalance in nearly six years, as imports and exports both hit records.
The November deficit was 3.2 percent higher
than October's $48.9 billion imbalance, the Commerce Department reported Friday.
U.S. exports of goods and services were up 2.3 percent to an all-time high of
$200.2 billion. Imports rose an even faster 2.5 percent to a record $250.7
billion.
A rising trade deficit, which reduces
economic growth, means that the United States is buying more goods and services
from other countries than it is selling them. President Donald Trump views
America's massive trade deficits as a sign of economic weakness. He blames them
on bad trade deals and abusive practices by China and other trade partners.
The politically sensitive deficit with China
rose to $35.4 billion in November, the biggest goods deficit that the United
States runs with any country and the largest monthly deficit with China since
September 2015.
The overall deficit in November in goods and
services was the largest since January 2012. Through the first 11 months of
2017, the monthly deficits total $513.6 billion, 11.6 percent above the deficit
total for the same period in 2016. The United States had run up a $737.4
billion deficit in goods trade through November and had a $223.8 billion
surplus in trade in services such as tourism and banking.
Trump contends that the major tax cut
legislation Congress approved last month will help reduce the deficits by
encouraging companies to bring production back to the United States. He has
also vowed tougher enforcement of U.S. trade laws by imposing penalty tariffs
on foreign goods from countries that are using unfair practices to compete
against American workers and companies.
Trump has pledged to renegotiate what he sees
as bad trade deals such as the North American Free Trade Agreement with Canada
and Mexico, and go after countries he believes have rigged the global trade
system to their advantage. But many private economists argue that trade
deficits are largely caused not by flawed trade agreements or cheating by
particular countries but by a bigger economic force — Americans spend more than
they produce, and imports have to fill in the gap.
For November, the United States saw petroleum
imports rise 10.1 percent to $17 billion, as the average price of a barrel of
imported crude oil rose to $50.10, up from $47.26 in October.
U.S. exports of commercial aircraft,
telecommunications equipment and American-made autos and auto parts were all up
in November. U.S. manufacturers have been helped this year by a rebounding
global economy and a weaker dollar which has made American goods more
competitive on foreign markets.The
Total Investment & Insurance Solutions
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