US Goods Trade Deficit With China at 5 Year Low

The U.S. goods trade deficit with China, a focus of President Donald Trump’s “America First” agenda, dropped to a five-year low in March amid a surge in exports, including soybeans.

The report from the Commerce Department on Thursday came amid escalating trade tensions between Washington and Beijing. Trump threatened on Sunday to raise tariffs on $200 billion worth of Chinese goods from 10 to 25 percent on Friday. China has promised to retaliate if the duties were imposed.



Reuters, citing U.S. government sources, reported on Wednesday that China had backtracked on almost all aspects of a trade deal between Washington and Beijing. China on Thursday appealed to the United States to meet it halfway to salvage a deal that could end their trade war.

The politically sensitive goods trade deficit with China decreased 16.2 percent to an unadjusted $20.7 billion, the lowest level since March 2014, also as imports from the world’s No. 2 economy fell 6.1 percent. Exports to China jumped 23.6 percent in March.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza