US trade deficit widens to 7-month high in September
Updated 14:21, 07-Nov-2018
US trade deficit widened to a seven-month high in September as imports hit a record high and exports bounced back, the US Commerce Department reported Friday.
The goods and services deficit climbed to 54 billion US dollars in September from a revised 53.3 billion US dollars in August, registering the largest trade gap since February, the report said.
US imports rose 1.5 percent to a record high of 266.6 billion US dollars in September, and exports bounced back 1.5 percent to 212.6 billion US dollars after dropping for three consecutive months.
In September, soybean exports fell 29 percent to 1.79 billion US dollars, following a similar extent of decline in August, due to retaliatory tariffs from other trading partners on US agricultural products.
The trade deficit rose to 445 billion US dollars in the first nine months this year, up 10.1 percent from the same period in 2017, the report said.
Economists believe the country's long-time trade deficit resulted from its macroeconomic policies and raising tariffs against imports is not the right way to reduce the deficit, which is likely to increase further because of the planned US fiscal stimulus.
A strong US dollar has also contributed to the widening of the trade deficit, and analysts predicted that the strengthening of the dollar is expected to impede exports.
Source(s): Xinhua News Agency