Trade Deficit

Tariffs are essentially taxes imposed by a country on goods imported from abroad.  They serve multiple purposes: generating revenue for the government, protecting domestic industries from foreign competition, and sometimes as a tool in trade negotiations.  When a tariff is applied, it increases the cost of imported goods, making them less competitive against domestic products.

America has long been the linchpin of the global economy.  It has often been suggested that when America sneezes, the world catches a cold.  So far, the world’s largest economy has not reached for a tissue or even sniffled, but large trading partners are exhibiting signs of weakness.

America’s trade balance improved in November 2019 according to data from the Bureau of Economic Analysis.  The nation’s deficit improved to $43.1 billion from the upwardly revised count of $46.9 billion (originally $47.2 billion).  In short, both sides of the ledger improved for America as imports fell while exports increased. 

November 2018 International Trade

America’s trade deficit continued growing in October 2018 according to data from the Bureau of Economic Analysis.  The most recent deficit grew to $55.5 billion from the upwardly revised count of $54.6 (originally $54.0 billion).  In the period, exports declined $300 million while imports increased $600 million, causing the shortfall to reach a 10-year high.

America’s trade deficit widened in June according to the Bureau of Economic Analysis.  Increasing to $46.3 billion, this shortfall jumped 7.3 percent in the period.  Year-to-date, our nation’s trading gap has widened $19.6 billion or 7.2 percent versus the same period in 2017.  Both sides of the ledger worsened for the U.S.

America’s trading shortfall improved in May 2018 according to the Bureau of Economic Analysis.  Our nation’s goods and services deficit dropped $3.0 billion to $43.1 billion from April’s downwardly revised tally (originally $46.2 billion).  This improvement put the monthly trade gap at its narrowest reading since October 2016.

As the earliest data on 2018 trade trickles in, Atlas is reminded of deceleration.  According to the Bureau of Economic Analysis (BEA), America’s trade deficit worsened to $56.6 billion in January 2018.  Adding to the dour tone of this release, December’s shortfall intensified to $53.9 billion (originally $53.1 billion).  Since net exports are added to the other compo

America’s leadership in the global economic expansion is evident in the November 2017 Trade Balance report from the Bureau of Economic Analysis.  America is increasing its purchases from foreign countries faster than trading partners are increasing their purchases from our nation; an important takeaway is that both imports and exports are expanding.  With a shortfall of $50.5 bi