After President Trump campaigned in 2016 to bring down the US trade deficit with rest of world, final set of US trade figures before election shows
- US goods and services trade deficit in August at its highest monthly level since 2006
- goods trade deficit at a monthly record
- US goods and services trade deficit in August at its highest monthly level since 2006
- goods trade deficit at a monthly record
... which is not to endorse it as an actual symbol of economic health, but the US trade deficit for 2020 on course to be larger than 2016. And the ‘phase 1’ agreement with China for it to purchase more from US is not on target ...
In those monthly figures the squeeze on the US deficit with China continues - after the Trump tariffs, but US consumers have simply substituted imports from elsewhere - record from Mexico, German, Japanese imports up etc
On an annualised basis (we don’t tend to do that in the UK) - monthly goods trade deficit is a trillion dollars
https://twitter.com/brad_setser/status/1313468322097364994?s=21
And yes the pandemic is a major factor. Imports back to normal, exports not (yet):
https://twitter.com/brad_setser/status/1313469325039333379?s=21
Significance here, is that Biden will attack Trump from the perspective that he wasn’t tough enough on China trade. Trade deal scepticism will continue whoever wins... witness Biden’s “build back better” express tour of rust belt
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