The U.S. trade deficit jumped in July as imports soared, despite President Trump’s attempts to change the balance of trade through tariffs. The increase followed China’s imposing retaliatory tariffs on the U.S., suggesting that the threat of a trade war is not quickly lowering the trade deficit.
The Commerce Department reported Wednesday that the trade deficit grew 9.5 percent July to $50.1 billion, up from $45.7 the previous month. The shift was due to declines in soybean and aircraft parts exports and a surge in oil prices, driving the cost of imports higher.
The shift happened despite a series of new tariffs institute by the Trump administration of 25 percent on steel and 10 percent on aluminum imports as well as $50 billion worth of Chinese goods. Further tariffs are expected, including 25 percent ones on another $200 billion of Chinese goods and possible 25 percent tariffs for auto and auto parts imports. The administration has defended the policies as necessary to counter China’s aggressive policies.
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Trade deficit jumped in July as imports soared, despite Trump's tariffs https://t.co/FVcKaNqiJm
— Washington Examiner (@dcexaminer) September 5, 2018
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