The Econoday consensus expected the trade deficit to shrink to $-71.3 billion.

Instead, the Census Bureau Advance Trade Report shows the deficit rose to $-74.4 billion with December revised to $-72.3 billion.

In January, exports declined 2.2%. Exports of goods for January were $133.9 billion, $3.1 billion less than December exports.

Imports declined only 0.5%. Imports of goods for January were $208.3 billion, $0.9 billion less than December imports.

These reports will take a toll out of GDP estimates for the first quarter.

Trump Will Howl

The trade hawks in the administration will howl over today's reports.

However, the deficit is poised to get worse, much worse.


Trump is Clueless About Trade

Trump does not understand trade deficits. The "art of the deal" cannot work when you don't understand essential points.

Trump's tax cut will increase the deficit and deficit spending ensures the trade imbalance will grow. Economists have not figured this out.

Mathematically, tariffs cannot possibly help. They can only make matters worse.

To understand the math, please see Trump's Tariffs Show He's "Clueless About Trade".

Also consider Disputing Trump’s NAFTA “Catastrophe” with Pictures: What’s the True Source of Trade Imbalances?

A huge mistake is in the works: Trump is Set to Promote Trade Hawk Peter Navarro.

Trump's trade policies are set to exacerbate the next global recession. Few see it coming.

Mike "Mish" Shedlock

Trade Deficit Widens 6.3% to $72.2 Billion, Worse than Expected

Economists expected the trade deficit to widen, but the report was outside the range of any estimate.

Trade Deficit Widens: Cascade of Bad News Accelerates, Trump Will Howl

The International Trade in Goods and Services report shows the trade deficit widened to $47.6 billion in April from $45.3 billion in March.

Trade Deficit Widens as Imports Rise More Than Exports

The international trade deficit was $69.7 billion in November, up $1.6 billion from $68.1 billion in October.

Trade Deficit Unexpectedly Shrinks in March

The advance trade report broke a string of increasing goods deficits in March, shrinking 10.3%.

Trade Deficit Widens by 1.7% With China Leading the Way

Exports fell 0.1% and imports rose 0.2%. The result was a widening of the trade deficit to $55.5 billion.

More Winning: Trade Deficit Deepens Much More Than Expected

The US trade deficit widened to $55.5 billion from a negatively revised $51.2 billion. The consensus was $53.5 billion.

Trade Deficit Widens Despite Tariffs: Record Deficits With China, Mexico

Today's trade report will set off hows from trump. Imports up, exports down. Record deficits with China and Mexico.

Trade Deficit Widens Again: Expect More Trump Howls

Trump is sure to howl over this month's trade report. The trade deficit rose again.

Trade Deficit Unexpectedly Widens: Exports Sink, Imports Up Sharply

Economists are on a roll today. Not a single economist got 4th quarter GDP correct and not a single economist got the trade deficit correct. In both cases, economists were overly optimistic.