Wednesday, March 6, 2019

America's Trade Deficit Grows For Third Straight Year, Hitting All Time High......

The Commerce Department said Wednesday that — despite more than two years of President Trump’s “America First” policies — the United States last year posted a $891.2 billion merchandise trade deficit, the largest in the nation’s 243-year history.

The trade gap with China also hit a record $419 billion, underscoring the stakes for the president’s bid to reach a deal with Chinese President Xi Jinping as soon as this month.

The department’s final 2018 trade report, which was delayed by the partial government shutdown, showed that the United States bought far more in foreign goods than it sold to customers in Africa, Asia, Europe and North America. The shortfall topped the 2006 record of $838.3 billion, set as the housing bubble was peaking, and marked the third consecutive year of rising deficits.

A broader measure of the nation’s trade performance, which includes the services sector, showed a $621 billion deficit. That reflected a deterioration of more than $100 billion from the figure Trump inherited from president Barack Obama.

It has been evident for months that Trump was not shrinking a trade gap that he calls “unsustainable” and that he says represents a major transfer of wealth from Americans to foreigners. Over the past year, even as he imposed tariffs on foreign-made solar panels, washing machines, steel, aluminum and assorted goods from China, imports roared ahead of exports.

The president thus begins his reelection drive with a core campaign promise unfulfilled — and with a recent flurry of economic research showing that his embrace of tariffs is damaging the U.S. economy.

Economists say the trade deficit is swelling because of broad economic forces, including a chronic shortfall in national savings that was exacerbated by last year’s $1.5 trillion corporate and personal income tax cut. As cash-flush businesses and consumers increased their spending, purchases of imported goods rose while the overvalued dollar weighed on exports.

“Macroeconomics end up ruling. You can’t wish it away. You can’t tariff it away,” said William Reinsch, a former Commerce Department official now at the Center for Strategic and International Studies.

The Commerce Department report comes amid indications that negotiations with China over a broad trade agreement may be in their final weeks. China has offered to buy a reported $1.2 trillion in additional American products over the next six years in a deal that reportedly would ease each side’s tariffs, usher in changes to Beijing’s state-led economic model and include tough new enforcement mechanisms.

But most economists say that such increased Chinese purchases probably would only divert U.S. shipments from other foreign customers, shrinking the trade gap with China but leaving the global balance largely unchanged...

America is waiting for you Trump. We won't hold our breath.

More below THE FOLD

13 comments:

  1. When the failed tRump presidency comes to an end the two parties will return to their promotion of globalism. tRump's failure to affect the trade deficit and his tariffs harming the US economy will "prove" that we have no choice but to ramp up the job-killing free trade deals. Can the next potus (a moderate Democrat msnbc pundits say we MUST nominate) get us back into the tpp? Ugh.

    The Orange Turd = America's downfall. No matter WHAT happens.

    MAYBE if we elect Bernie Sanders we will have a chance...

    ReplyDelete
    Replies
    1. Maybe. But I doubt it. Unless we won't mind Venezuela on our shores.

      Delete
    2. Bernie Sanders 2020! He is the leader American needs. Also, for the record, I would mind "Venezuela on our shores" very much. I want to bring happiness to our shores. As does Bernie Sanders... who I would say has a "happiness agenda".

      Delete
  2. Just goes to show you how those tariffs are working out right?

    ReplyDelete
  3. It's all my fault. The Trump Cut lowered my taxes this year by 0.03% With that wonderful TrickleDown, I should be able to trade in my 2000 truck in...er...uh 50 years. MAGA

    ReplyDelete
  4. BB... at least in previous GOP administrations when they sent the debt soaring, us regular Joes got a few hundred bucks each. With this group, the debt soars and we're just left hurting and licking our sores.

    ReplyDelete
  5. Last night on my way home from Ordering me a 5 dollar box from Popeyes Chicken, I was savagely attacked in the parking lot by two Obama Supporters. They were carrying two jugs of hot sauce and poured it into my eyes. Then they started kicking me and punching me yelling “THIS IS ISIS COUNTRY ☪️ “ and as I laid there being tormented I grabbed ahold of my chicken leg 🍗 to try and defend myself against my assailants. I noticed that It was covered in the Louisiana hot sauce they poured on me so I went ahead and took a bite of that tender succulent leg thinking it was gonna be my last meal. After that my attackers ran away and I never got justice because I couldn’t see to identify them. This is Obama’s Americ

    ReplyDelete
    Replies
    1. Thanks for stopping in with your story. And a story it is, in every sense of the word. I'm thinking you're a flying monkey from WYD weblog, one of the MANY sock puppets that infest that tRumpian con swamp.

      Have a fine day now, ya hear?

      Delete
  6. Shaw Kenawe is SO HARD-UP for people to come to her DESERTED bog, that she's now writing comments there herself under fictitious names.
    I heard that shes even considering to pay that low-life Rational Nation USA to stay around and not retire from his Piss-poor DESERTED blog.

    ReplyDelete
    Replies
    1. Oh contraire FYI! Progressive Eruptions is doing just fine with its readership of intelligent, rational, and thoughtful people. you know the type. Folks that actually have something of value to say. Folks quite unlike the flying monkeys from conservaturd weblogs like WYD and others.

      Now, run along

      Delete
  7. "For Your Information" failed to report that what he hears about Shaw's blog comes from the voices in his head. Be kind to damaged people like him, it's the Agnostic thing to do.

    I rarely comment here, but I've lurked and read your posts, and they are smart, thoughtful, and on the nose. You'll be missed.

    ReplyDelete

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