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Let's Check In on How Well Tariffs Are Reducing US Trade Deficit

The advance trade data on goods came out today. Let's have a look.
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Goods Balance of Trade and Advance Goods Balance 2021-06

Advance Trade Data

The data point -91,207 is from today's Advance Indicators Report 

  • The international trade deficit was $91.2 billion in June, up $3.0 billion from $88.2 billion in May. 
  • Exports of goods for June were $145.5 billion, $0.5 billion more than May exports.
  • Imports of goods for June were $236.7 billion, $3.5 billion more than May imports.

Trade Wars Are Good and Easy to Win

As I recall, "trade wars are good and easy to win". Now, where did we hear that? 

Given that Biden mostly left Trump's tariffs intact and even increased tariffs on Canadian lumber, the above chart is quite amusing. 

It's true that Trump reduced the goods and services deficit with China, but imports shifted to Vietnam, Taiwan, Mexico, and other places.

What About Services?

Balance of Trade in Billions of Dollars 2021-05

Hooray we have a surplus in services! 

Note however, that the services surplus peaked in January of 2018, right about when Trump launched his massive trade wars with the world. 

Trade Wars Easy to Win 3

Trump made his ""trade wars are good and easy to win" Tweet on March 2, 2018. 

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