US trade deficit up to $67.1 billion in August, 14-year high

The U.S. trade deficit rose in August to the highest level in 14 years

Via AP news wire
Tuesday 06 October 2020 14:00 BST
Trade Gap
Trade Gap (Copyright 2019 The Associated Press. All rights reserved.)

The U.S. trade deficit rose in August to the highest level in 14 years.

The Commerce Department reported Tuesday that the gap between the goods and services the United States sells and what it buys abroad climbed 5.9% in August to $67.1 billion.

The politically sensitive deficit in the trade of goods with China fell 6.7% to $26.4 billion.

So far this year, the United States has recorded a trade gap of $421.8 billion, up 5.7% from January-August 2019. Exports rose 2.2% to $171.9 billion, but imports rose more — up 3.2% to $239 billion.

President Donald Trump campaigned on a pledge to bring down America's persistent trade deficits He imposed taxes on imports of steel, aluminum and most products from China, among other things; and renegotiated a North American trade pact in an effort to encourage more production in the United States.

But the trade deficit won't yield easily to changes in trade policy. As the U.S. economy recovers from springtime shutdowns, Americans are buying more imported goods while foreign demand for U.S. products remains weak. And after a strict lockdown in February, China's factories got up and running faster than those in most places.

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