Civic Register
| 2.7.18

U.S. Trade Deficit Reaches Nine-year High

Join us and tell your reps how you feel!

What’s the story?

The U.S. trade deficit grew to $566 billion in 2017, its highest level since 2008.

According to a Commerce Department report, the deficit in the goods trade with Mexico climbed to $71.1 billion and the goods gap with China hit a record of $375.2 billion.

Trade deficits occur when a country buys more products from other countries than it sells.

Why does it matter?

President Donald Trump campaigned on a promise to make trade “fair,” and in his State of the Union Address, he reiterated his commitment to “fix bad trade deals and negotiate new ones.” This includes the president’s repeated threat to end the North American Free Trade Agreement (NAFTA) unless it can be made more favorable to the U.S.

"Trump's trade team has not been able to stem the flood of imports into the country yet," Chris Rupkey, chief financial economist at MUFG Union Bank, told CBS News.

And as CBS pointed out, “the trade gap grew even though the U.S. dollar dropped nearly 7 percent last year…a move that gives U.S. companies a price edge in foreign markets and makes imports pricier in America.”

[Read our Countable Explains: What’s a ‘Weak Dollar’?]

Commerce Secretary Wilbur Ross said the trade deficit “ultimately will be reduced” and cited the administration’s decision last month to slap a 30-percent tax on imported solar panels. However, Ross said “it is not practical to set an exact deadline” for narrowing the trade gap.

What do you think?

Are you concerned about the trade gap? Or do you trust it “ultimately will be reduced”? Would you like to see tougher trade negotiations with China, Mexico, Canada? Hit Take Action and tell your reps, then share your thoughts below.

—Josh Herman

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(Photo Credit: Alija / iStock)