Trade Deficit Widens by 1.7% With China Leading the Way

Exports fell 0.1% and imports rose 0.2%. The result was a widening of the trade deficit to $55.5 billion.

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the International Goods and Services Trade Deficit was $55.5 billion in October, up $0.9 billion from $54.6 billion in September, revised.

Exports, Imports, and Balance

  • October exports were $211.0 billion, $0.3 billion less than September exports. October imports were $266.5 billion, $0.6 billion more than September imports.
  • The October increase in the goods and services deficit reflected an increase in the goods deficit of $0.9 billion to $78.1 billion and a decrease in the services surplus of $0.1 billion to $22.6 billion.
  • Year‐to‐date, the goods and services deficit increased $51.3 billion, or 11.4 percent, from the same period in 2017. Exports increased $149.3 billion or 7.7 percent. Imports increased $200.6 billion or 8.4 percent.
  • Average exports increased $12.7 billion from October 2017. Average imports increased $22.1 billion from October 2017.

Exports

  • Exports of goods decreased $0.4 billion to $141.5 billion in October.
  • Foods, feeds, and beverages decreased $0.7 billion. Soybeans decreased $0.8 billion. Capital goods decreased $0.5 billion. Other goods increased $0.5 billion.
  • Exports of services increased $0.1 billion to $69.6 billion in October.

Imports

  • Imports of goods increased $0.5 billion to $219.6 billion in October.
  • Imports of goods on a Census basis increased $0.3 billion.
  • Imports of consumer goods increased $2.0 billion. Pharmaceutical preparations increased $1.5 billion. Other goods increased $0.8 billion. Automotive vehicles, parts, and engines increased $0.7 billion. Capital goods decreased $3.2 billion.

By Country

  • The deficit with China increased $0.7 billion to $38.2 billion in October. Exports decreased 2.6 billion to $7.6 billion and imports decreased $1.9 billion to $45.7 billion.
  • The deficit with Mexico decreased $1.2 billion to $6.4 billion in October. Exports decreased $0.1 billion to $22.4 billion and imports decreased $1.3 billion to $28.8 billion.

Third Quarter Numbers by Country

  • The deficit with China increased $10.3 billion to $95.9 billion in the third quarter. Exports decreased $3.1 billion to $46.0 billion and imports increased $7.2 billion to $141.9 billion.
  • The deficit with the European Union increased $6.3 billion to $30.2 billion in the third quarter. Exports decreased $2.0 billion to $143.2 billion and imports increased $4.2 billion to $173.4 billion.
  • The deficit with Japan decreased $1.9 billion to $13.4 billion in the third quarter. Exports increased $0.5 billion to $30.4 billion and imports decreased $1.5 billion to $43.7 billion.

Those tariffs sure are working. Unfortunately, in reverse, especially soybeans.

Mike "Mish" Shedlock

Comments
No. 1-6
mannfm11
mannfm11

What can't go on forever won't. Once the gold standard was destroyed, there was no balance for trade. Deficits have sucked the middle class dry. Take credit cards away from Americans and we will see trade balanced. There is a minimum 15.6% tariff on American goods in the form of a payroll tax. Throw in corporate tax, income tax and property tax and the multiple is massive. Trade will be fixed by new deals or bankruptcy here and abroad.

Escierto
Escierto

So much winning! I am getting tired of so much winning!

Realist
Realist

Tariffs have never been an effective tool in the past. They will not work this time. The definition of insanity is to keep trying the same thing over and over, yet expect different results.

2banana
2banana

So, when do most of the American tariffs kick in?

From everything I have read - on Jan 1st.

Which is why importers are furiously trying to get as much stock in before the New Year.


"Those tariffs sure are working. Unfortunately, in reverse, especially soybeans."

Bam_Man
Bam_Man

A cheaper Dollar will help. And a cheaper Dollar we will get very soon - once the F/X market realizes that the Fed is finished with raising rates. It sure looks to me like the 25 bps increase next week will be the last hurrah.

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