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US trade deficit after Trump trade war, tariffs hit $621 billion in 2018 - Business Insider
US trade deficit, for goods and services, soared in 2018.
2018 = $621 billion
2017 = $560 billion
2016 = $502 billion
Imports = $3.12 trillion (up by $218 bn)
Exports = $2.5 trillion (up by $149 bn)
This happened despite the trade deficit falling significantly in November 2018.
We should note that contrary to the fevered misunderstandings of nativists and protectionists (like Trump), trade deficits are not actually a bad thing. Usually deficits increase when the US economy is doing well, because people are buying lots of goods and services from abroad. Note that the deficit still isn't as high as during the 2000's bubble:
We should also note that one major goal of Trump's tariffs, to reduce the trade deficit, are backfiring. One of the reasons why imports grew was because US companies were buying Chinese goods before the tariffs went into effect. As a result, the US-China trade deficit increased to $419 billion (up $44 bn). US companies also didn't move a lot of production back to the US, rather they moved to other nations that aren't currently getting hit by tariffs, such as Vietnam.
US trade deficit, for goods and services, soared in 2018.
2018 = $621 billion
2017 = $560 billion
2016 = $502 billion
Imports = $3.12 trillion (up by $218 bn)
Exports = $2.5 trillion (up by $149 bn)
This happened despite the trade deficit falling significantly in November 2018.
We should note that contrary to the fevered misunderstandings of nativists and protectionists (like Trump), trade deficits are not actually a bad thing. Usually deficits increase when the US economy is doing well, because people are buying lots of goods and services from abroad. Note that the deficit still isn't as high as during the 2000's bubble:
We should also note that one major goal of Trump's tariffs, to reduce the trade deficit, are backfiring. One of the reasons why imports grew was because US companies were buying Chinese goods before the tariffs went into effect. As a result, the US-China trade deficit increased to $419 billion (up $44 bn). US companies also didn't move a lot of production back to the US, rather they moved to other nations that aren't currently getting hit by tariffs, such as Vietnam.
