The US trade deficit in goods declined by 5.4% in November at lowest since 2017

The trade war between the US and China from the last 18 months results in the trade deficit in November for the US. The US trade deficit in goods touched the lowest level in more than two years since August 2017, but it’s probably not enough to prevent the annual gap in 2019 from being the largest in 11 years.

The trade deficit fell sharply in November for the second month in a row. The trade deficit in goods fell 5.4 % to USD63.2 billion in November from a revised 66.8 billion dollars in the prior month, registering the second consecutive monthly drop.

In November goods imports decreased by USD2.7 billions I.e. slide 1.3% to USD199.6 billion. A broad decline across food, industrial supplies, and capital goods leads slide in imports.

However, exports of goods, rose 0.7% i.e. up 0.9 billion dollars to USD136.4 billion. The rise in exports driven by a 3.4 %increase in automotive vehicles and products and a 2.6 %rise in consumer goods. 

The additional tariffs on imports have imposed by the US on China from Sept 1, 2019, have reflected in a continuous decline in the imports. While the fall in trade deficit should boost up the growth in the fourth quarter. As both, the countries have agreed on the Phase one trade deal. China has to purchase agriculture goods worth USD 40 billion along with energy and other goods this will boost the US exports and ultimately will help to reduce the trade deficit. while .while both the US and China have agreed on a 15% tariff was set to be imposed on around USD160 billion of Chinese goods. Along with this, the US agreed to reduce tariffs on USD120 billion of Chinese goods imposed in September. This will help to maintain the US imports.

John Smith

John is a Senior News Reporter of Biznews365. John loves fishing, biking and seeing live music. He covers all news Related to Technology and space. Email id: phone: +1 408-622-0123

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