The US trade deficit rose to $621bn in 2018, a 10-year high, stoking fears the Trump administration could increase tariffs further. The gap between US exports and American imports rose to $419bn. Slowing global demand for US exports and a strong dollar, meanwhile, made US goods less competitive while domestic tax cuts gave consumers increasing opportunities to spend on imported goods. Chris Beauchamp at spread-betting firm IG, said Trump could “up the ante” to distract attention from the deficit, suggesting trade wars could intensify. The increase is despite the administration’s protectionist policies, aimed at helping US firms.
The US trade deficit rose to $621bn in 2018, a 10-year high, stoking fears the Trump administration could increase tariffs further. The gap between US exports and Chinese imports rose to $419bn. Slowing global demand for US exports and a strong dollar, meanwhile, made US goods less competitive while domestic tax cuts gave consumers increasing opportunities to spend on imported goods. Chris Beauchamp at spread-betting firm IG, said Trump could “up the ante” to distract attention from the deficit, suggesting trade wars could intensify. The increase is despite the administration’s protectionist policies, aimed at helping US firms.