New Five-Year Low Reached in Goods Trade Deficit Between US and China
U.S. goods trade deficit with China hit a five-year low during the month of March, according to a recent article by Reuters. With trade tensions between the two countries and the 25% tariff on $200 billion worth of Chinese goods, President Trump's actions and push for the "America First" narrative have caused harm to the global economy.
With tariffs set to increase May 10, China is promising to retaliate. Several economists and credit professionals speculated trade talks had been more amicable before May, but according to Reuters, China has now "backtracked on almost all aspects of a trade deal between Washington and Beijing."
The trade deficit increased to $50 billion in March, which is up 1.5%. The data regarding international trade had been volatile for a few months, according to Reuters. The goods trade deficit also increased by 0.7% to $72.4 billion in March.
—Christie Citranglo, editorial associate