The United States trade deficit reached $55.5 billion in October which is the highest level in a decade. Imports rose 0.2% to $266.5 billion and exports fell 0.1% to $211 billion, marking yet another failure of the U.S.’s trade war.
U.S. President Donald Trump has made the trade deficit a signature grievance of both his campaign and presidency. The president has kickstarted a trade war by slapping tariffs on aluminum, steel, and $250 billion worth of Chinese goods. But the latest figures from the Commerce Department show the deficit with China has actually risen 7.1% to a record $43.1 billion, with U.S. soybean exports to China dropping 46.8% as a result of retaliatory tariffs.
The trade gap, something Trump had vowed to balance, has now widened for five straight months. Data for September was revised to show the deficit rising to $54.6 billion instead of the previously reported $54.0 billion. The trade war has been an utter failure in every aspect, especially considering the main goal was to decrease the trade deficit.
Last Saturday, Trump and Chinese President Xi Jinping agreed to hold off on imposing more tariffs for 90 days while they negotiate a deal to end the trade dispute. The news caused a one day surge in the stock market, however, the confidence in both governments was quickly lost, as the market continues to drop.
The increasing trade deficit suggests that this issue will probably be a drag on the gross domestic product in the fourth quarter, and further adds to a weak housing market and business spending on equipment reports in signaling a slowing down in economic growth. Trade subtracted 1.91 percentage points from GDP growth in the July-September quarter.
There are plenty of signs that the economy is on life support. If you have not yet started to prepare for the high likelihood that we will be flung into another depression, now is the time to consider prepping. We suggest beginning by reading The Prepper’s Blueprint, by Tess Pennington. The book is expertly laid out and is an excellent resource for those who have just begun their journey of preparedness.
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“The United States trade deficit reached $55.5 billion in October which is the highest level in a decade. Imports rose 0.2% to $266.5 billion and exports fell 0.1% to $211 billion, marking yet another failure of the U.S.’s trade war.”
FALSE. ABSOLUTELY FALSE. THIS BLIP DOES NOT CONSTITUTE “FAILURE” of TRUMP’S TARIFFS.
Yes the Trade Deficit is widening. This has occurred as US businesses have rushed additional purchases from Chinese Exporters to beat the imposition of tariffs creating a bump in the Trade Deficit.
IF ANYTHING, IT EVIDENCES THE DIRE NECESSITY OF IMPOSING TARIFFS ON CHINESE PRODUCTS ASAP, WHICH HAS BEEN PAUSED FOR 90 DAYS, TO GIVE THE CHINESE TIME TO ADJUST AND IMPLEMENT PERMANENT STRUCTURAL CHANGES TO THEIR ECONOMY.
Spoiler alert: It won’t happen. China will have to devalue the Yuan or buy massive shipments of LNG, soybeans, grains, and Boeing aircraft to bridge that gap. Or both. Not gonna happen. Not gonna be enough over the long term.
The effectiveness of TRUMP TARIFFS must be measured over the long term; not for any given month or two, especially when the BIG TARIFFS on hundreds of billions of dollars of Chinese exports have been placed on “pause.”
The financial rape of America took place over decades and it will take a couple of years of raw data with TARIFFS in place on Chinese products to produce the data that will show a reversal of that trend.
Once TARIFFS ARE in place, basic economic principles, like the “Principle of Substitution” and “Elasticity” will produce the desired effects. You can bet the farm that American middle men are scrambling to find other entities capable of producing the products they want under the specs they need to sell to Americans, in other regions and other nations. In the end this business will likely flow to the PIGS after they exit the EU and establish their own national currencies again.
Consider that Chinese workers producing Disney Dolls are paid 1 1/2 CENTS for each doll they produce. Less than two cents !!! How much are those dolls sold for to American consumers ??? $10.00 ??? $20.00 ??? I don’t know, and I don’t need to know the exact price to understand why Multinationals rushed to move their factories to China once the green light was given by GHWB. Their profits have been HUGE, ENORMOUS, IMMENSE, and at the expense of the American worker, family, and taxpayer.
It’s their turn in the barrel. FUCK ‘EM !!! 🙂
Anyone who doesn’t believe that the TRUMP TARIFFS, as limited as they are currently, are having an immediate and profound effect upon China is sadly mistaken.
Read the article at ZERO HEDGE:
https://www.zerohedge.com/news/2018-12-08/chinese-imports-us-plummet-25-trade-war-takes-toll
🙂 🙂 🙂