Monday, 20 May, 2019

The Growing Trade Deficit Strengthens Trump's Hand in Trade Talks With China

Chinese container ship Trump dealt blow as US trade deficit jumps
Russell Knight | 07 March, 2019, 14:09

The Commerce Department said on Wednesday that a 12.4 per cent jump in the goods deficit in December had contributed to the record $891.3 billion goods trade shortfall previous year. He put $250 billion in tariffs on Chinese goods last September in an attempt to alter the balance of trade with China and increase leverage over the world's second-largest economy at the negotiating table.

President Donald Trump is pursuing a protectionist trade agenda to shield US manufacturing from what he says is unfair foreign competition.

A BofA Merrill Lynch Global Research report in 2018 also expects the share of the trade deficit in GDP to grow 0.2 percentage points by 2020.

Exports of services failed to help out December, unchanged at a still very strong $69.5 billion with imports of services, however, rising 1.0 percent in the month to $47.7 billion. The next highest was the European Union at $15.8 billion, and Mexico at $8.8 billion. The United States ran a record surplus past year with South and Central America.

The gap worsened because Americans bought more household appliances, cell phones and computer products from overseas, while foreign demand for civilian aircraft and oil products declined, dragging down US exports. Imports jumped 7.5 per cent to $US3.12 trillion on purchases of items from pharmaceuticals to computers, along with services such as travel.

The trouble is equally severe on both sides of the report as exports in December fell 2.8 percent to $205.1 billion and imports rose 2.4 percent to $264.9 billion.

The deficit in goods of $US891.3 billion ($1.27 trillion) was the largest in U.S. history.

School of Rock star arrested for 'stealing guitars and selling them'
Joey Gaydos Jr was 11 years old when he landed the role of lead guitarist "Zack" in Black's classroom rock band. Apparently, Gaydos Jr. had been stealing the instruments and then selling them to pawn shops for quick cash.

Captain Marvel: Female-led superhero film labelled 'perfunctory' by critics
The actress previously said she worked out four hours a day, seven days a week in the gym with trainer Jason Walsh for the role. A mediocre plot, with no groundbreaking visual work on screen, and yet, Captain Marvel is hardly a stinker to give a miss.

London man becomes second in world to be cured of HIV
But the patient has experienced long-term remission from the virus without the need for medications for 18 months. This makes it a tricky and unfeasible option as a treatment for other HIV-positive patients in the near future.

December's trade imbalance worsened because USA imports rose 2.1%, while exports to other countries fell 1.9%.

It has been evident for months that the President was failing to shrink a trade gap that he calls "unsustainable" and that he says represents a massive transfer of wealth from Americans to foreigners. The tariffs he threatened and then imposed on Chinese imports caused a rush by importers to get ahead of the new duties that fueled an increase in incoming traffic at West Coast ports past year.

The tax cuts may also contribute to the jump in trade deficit. He has also threatened even more tariffs, including an additional hike in tariffs on Chinese goods, a new "national security"-driven duty on auto imports, etc". According to the Washington Post, it is the largest merchandise trade deficit in the 243-year history of the United States.

Going forward. For days, there have been reports of progress in the trade talks between the US and China and while negotiators will take notice of the deficit number, it's not clear exactly whose hand it strengthens in the ongoing talks.

'It looks broadly consistent with our view that job growth remained solid in February despite cooling from the boomy figures reported for the prior several months, ' said Daniel Silver, an economist at JPMorgan in NY.

Following yesterday's economic growth figures, which surprised to the downside, the ABS will release worldwide trade and retail numbers for January.

Recommended

British man with HIV becomes second person ever to enter remission British man with HIV becomes second person ever to enter remission About 37 million people worldwide now have HIV, and the AIDS virus has killed about 35 million since taking off in the 1980s. The London patient, who had Hodgkin's lymphoma , is the first adult to be cleared of HIV since Brown.

Huawei announces it will sue the US government Huawei announces it will sue the US  government Australia's ties with China have deteriorated since 2017, when Canberra accused China of meddling in its domestic affairs. Separately, Huawei's chief financial officer Meng Wanzhou is suing Canada over her arrest at the request of the US.

United States demands release of journalist Cody Weddle detained in Venezuela United States  demands release of journalist Cody Weddle detained in Venezuela At the country's main airport, Kriener spoke to journalists and said he hoped the leader of the National Assembly would be safe. Wednesday, though no one has heard from them - and Venezuela's Ministry of Communication is remaining silent on the matter.

Kelly back in custody after appearing in court for child support case Kelly back in custody after appearing in court for child support case Drea was among multiple women who alleged sexual misconduct against the singer in the recent Lifetime docuseries " Surviving R. Kelly's mugshot was released on Wednesday (March 6) evening after he was arrested for $161,663 in unpaid child support.

Astronauts Welcome SpaceX's Crew Dragon to Space Station (Ripley and Earth, Too!) Astronauts Welcome SpaceX's Crew Dragon to Space Station (Ripley and Earth, Too!) It will also be the first time that a fully owned and operated commercial enterprise has ferried U.S. astronauts into space. This test dummy, nicknamed Ripley after the Sigourney Weaver character in the Alien movies, will be covered in sensors.

Dream Hampton: What Justice Means for R. Kelly's Accusers Dream Hampton: What Justice Means for R. Kelly's Accusers He acknowledged being in a relationship with two young women who live with him. "People betray me and I keep forgiving them". Kelly was also asked about his relationship with the two women he now lives with, Azriel Clary and Joycelyn Savage .

Knife crime: Treat it 'like a disease', says Sajid Javid Knife crime: Treat it 'like a disease', says Sajid Javid Mrs May has asked the Home Office to urgently coordinate a series of ministerial meetings and engagements on knife crime . In Birmingham three teenagers - two aged 16 and one 18 - died in the space of 12 days last month.

Joachim Low retires Muller, Boateng and Hummels from Germany national team Joachim Low retires Muller, Boateng and Hummels from Germany national team Personally, I am convinced that I can continue to play at the highest level and will continue to do so in the future. Mueller, 29, has scored 10 goals at World Cups, winning the golden boot in 2010.

Trump serves fast food again at White House sports event Trump serves fast food again at White House sports event They were probably happy to get to eat a little earlier than expected. He referenced the chicken sandwiches set before the podium. Trump said he paid for the food himself.

Osundairo Brothers Apologize for Their Involvement in Jussie Smollett Case Osundairo Brothers Apologize for Their Involvement in Jussie Smollett Case What the prosecution has put out regarding the Jussie Smollett case is a travesty for racial relations on all sides. Although police initially detained them, their cooperation led police to arrest Smollett.

Pakistan launches crackdown on militants, detains suspects Pakistan launches crackdown on militants, detains suspects After failing to adequately convince the FATF, Pakistan is now required to complete actions it has to take by the May timeline. A statement from the ministry of Interior said the decision was made at a high-level meeting on Monday.

Michael Bloomberg Decides Against Presidential Run in 2020 Michael Bloomberg Decides Against Presidential Run in 2020 Bloomberg and Steyer's decisions to stay out come as more 2020 Democrats denounce money in politics. Some of Bloomberg's past policy positions while NY mayor could have also proved problematic.

Steelers Antonio Brown Expected To Be Traded By Friday Steelers Antonio Brown Expected To Be Traded By Friday But if leaking that information helps the Steelers drive up the price for whoever is still in, more power to them. It's also smart for the Steelers to get a trade done this week, considering free agency starts next week.

Australia and Indonesia Sign Free-Trade Deal as Elections Near Australia and Indonesia Sign Free-Trade Deal as Elections Near Indonesian Minister of Trade Enggartiasto Lukita said Indonesia would complete ratification by the end of this year. Both Australia and Indonesia are in the world's top 20 economies but not each other's top 10 trading partners.

New study finds that measles vaccine does not cause autism New study finds that measles vaccine does not cause autism Since Jan. 1, there have been at least 206 confirmed cases of measles across 11 states, according to the U.S. Still, the study adds to a large body of evidence showing that vaccines don't cause autism, writes Dr.