Economics
U.S. Trade Gap Surged to $621 Billion in 2018, 10-Year High
- Goods deficits with China, Mexico, EU widen to records
- Trump has said big deficit is sign of poor trade policies
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The U.S. trade deficit widened in 2018 to a 10-year high of $621 billion, bucking President Donald Trump’s pledges to reduce it, as tax cuts boosted domestic demand for imports while the strong dollar and retaliatory tariffs weighed on exports.
The annual deficit in goods and services increased by $68.8 billion, or 12.5 percent, Commerce Department data showed Wednesday. The December gap jumped from the prior month to $59.8 billion, also a 10-year high and wider than the median estimate of economists. The merchandise-trade deficit with China -- the principal target of Trump’s trade war -- hit a record $419.2 billion in 2018.