US Trade Deficit Reached 10-Year High In October▼

Business

Published 1968d ago

The U.S. trade deficit hit $55.5 billion in October, the highest it's been since 2008. The Commerce Department said  Thursday the U.S.' trade gap grew by nearly $1 billion between September and October. Economists point to a few factors behind a surge in U.S. imports and a decline in exports. For one, some American companies have been stocking up on Chinese goods before a tariff hike that was supposed to kick in early next year. Americans are also spending more on foreign goods thanks to a strong economy. But a strong economy can be a double-edged sword because it also raises the dollar's value, making American products more expensive in foreign markets. But the biggest reason for the gap is probably the U.S.' trade war with China. The Trump administration hit China with tariffs on $250 billion worth of its imports, and China retaliated with its own tariffs on U.S. imports. Source