POST TIME: 7 September, 2018 00:00 00 AM
US trade deficit surges in July

US trade deficit surges in July

The US trade deficit surged to $50.1 billion in July on record imports that created burgeoning gaps with trading partners in the crosshairs of President Donald Trump’s aggressive policies, according to government data released Wednesday, reports AFP from Washington.

And with US goods facing retaliatory tariffs in many countries, exports dropped sharply that month, the Commerce Department reported.

The difference between imports and exports of goods and services jumped more than $4 billion, an increase of 9.5 percent, to $50.1 billion—just a few hundred million shy of the consensus forecast among economists.

It was the second consecutive month that saw the deficit widen, following the surge of exports in May meant to outrun tariffs imposed in US markets abroad.

The figures do not bode well for growth in the second quarter, although other economic indicators point to healthy demand and expanding GDP.

It was also a month of multiple records in the trade data: imports of goods and services were the highest ever, as were service exports.