US trade deficit grows despite ongoing boycott with China
In March, the US Trade deficit edged by 1.5 % but there is good news for Americans.
The gap with China continue to shorten amid the ongoing trade war.
President Donald Trump will be looking to shorten that gap more as he will raise the tariffs on some of China’s products on Friday.
The Census Bureau has reported on Thursday that the overall US monthly trade deficit grew up to $50 billion.
The American companies have imported more products than they have exported which is surprisingly a trend of strong economy.
Imports have risen by 1.1 % which reflects the increase in purchases related to industrial supplies and materials.
The consumers have imported less consumer goods especially cellphones which are largely produced in China.
The exports have been nearly equal to the imports. The main exports included US fuel and soybeans.
The goods trade deficit has decreased in the month of March. They have decreased about $1.9 billion from the total $28.3 billion.
The reason for this is cited because of the fallen imports.
The trade gap with China has dropped about 12% compared to last years’ three months count. This was also the time when Mr. Trump started imposing Tariffs to Chinese products in pursuit of bringing China to the negotiating table.
Due to the tariffs, the prices of Chinese products got high in the United States. The companies had to seek the products elsewhere or bear the cost among themselves or on the consumers.
Donald Trump is adamant that China bears the tariffs instead of American companies or consumers.
Some companies are ready to bear some of the costs but research studies show that American consumers will have to ultimately pay the price.
Chinese negotiators are in Washington, D.C. to talk about the underlying issues.