The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the International Goods and Services Trade Deficit was $55.5 billion in October, up $0.9 billion from $54.6 billion in September, revised.
Exports, Imports, and Balance
- October exports were $211.0 billion, $0.3 billion less than September exports. October imports were $266.5 billion, $0.6 billion more than September imports.
- The October increase in the goods and services deficit reflected an increase in the goods deficit of $0.9 billion to $78.1 billion and a decrease in the services surplus of $0.1 billion to $22.6 billion.
- Year‐to‐date, the goods and services deficit increased $51.3 billion, or 11.4 percent, from the same period in 2017. Exports increased $149.3 billion or 7.7 percent. Imports increased $200.6 billion or 8.4 percent.
- Average exports increased $12.7 billion from October 2017. Average imports increased $22.1 billion from October 2017.
Exports
- Exports of goods decreased $0.4 billion to $141.5 billion in October.
- Foods, feeds, and beverages decreased $0.7 billion. Soybeans decreased $0.8 billion. Capital goods decreased $0.5 billion. Other goods increased $0.5 billion.
- Exports of services increased $0.1 billion to $69.6 billion in October.
Imports
- Imports of goods increased $0.5 billion to $219.6 billion in October.
- Imports of goods on a Census basis increased $0.3 billion.
- Imports of consumer goods increased $2.0 billion. Pharmaceutical preparations increased $1.5 billion. Other goods increased $0.8 billion. Automotive vehicles, parts, and engines increased $0.7 billion. Capital goods decreased $3.2 billion.
By Country
- The deficit with China increased $0.7 billion to $38.2 billion in October. Exports decreased 2.6 billion to $7.6 billion and imports decreased $1.9 billion to $45.7 billion.
- The deficit with Mexico decreased $1.2 billion to $6.4 billion in October. Exports decreased $0.1 billion to $22.4 billion and imports decreased $1.3 billion to $28.8 billion.
Third Quarter Numbers by Country
- The deficit with China increased $10.3 billion to $95.9 billion in the third quarter. Exports decreased $3.1 billion to $46.0 billion and imports increased $7.2 billion to $141.9 billion.
- The deficit with the European Union increased $6.3 billion to $30.2 billion in the third quarter. Exports decreased $2.0 billion to $143.2 billion and imports increased $4.2 billion to $173.4 billion.
- The deficit with Japan decreased $1.9 billion to $13.4 billion in the third quarter. Exports increased $0.5 billion to $30.4 billion and imports decreased $1.5 billion to $43.7 billion.
Those tariffs sure are working. Unfortunately, in reverse, especially soybeans.
Mike “Mish” Shedlock
What can’t go on forever won’t. Once the gold standard was destroyed, there was no balance for trade. Deficits have sucked the middle class dry. Take credit cards away from Americans and we will see trade balanced. There is a minimum 15.6% tariff on American goods in the form of a payroll tax. Throw in corporate tax, income tax and property tax and the multiple is massive. Trade will be fixed by new deals or bankruptcy here and abroad.
So much winning! I am getting tired of so much winning!
So, when do most of the American tariffs kick in?
From everything I have read – on Jan 1st.
Which is why importers are furiously trying to get as much stock in before the New Year.
“Those tariffs sure are working. Unfortunately, in reverse, especially soybeans.”
A cheaper Dollar will help. And a cheaper Dollar we will get very soon – once the F/X market realizes that the Fed is finished with raising rates. It sure looks to me like the 25 bps increase next week will be the last hurrah.
A cheaper dollar will make people in the dollar world poorer. Some help.
You know as well as I do Stuki that they all go to zero eventually. Anyone expecting to benefit from a strong currency will at best be satisfied very temporarily.
Mises had some choice words for devaluation policies. I’m laughing out loud every time I read them.
I strongly feel that if we as a nation would adopt free market economics, cut taxes on our corporate makers, reduce regulation (especially on CO2 production), and focus on shareholder value, we can turn this thing around. I know these ideas are new to this country. But we need to start soon.
Sadly you are wrong. Cutting taxes on corporations do nothing. The principle “building and they will come” is a fallacy. As we have seen with the recently passed corporate tax cut, the bulk of it went to dividends and stock buy backs. BTW anyone who pays attention to CEOs during shareholders meeting would have known that that was the most likely result. When asked what was the plan for all the money being repatriated or being saved on taxes most CEO said: Dividend increases, stock buybacks. See this is the thing CEOs will lie on TV but not at a shareholders meeting… If you want effective tax cuts then give them to the middle class. They will spend the extra money increasing demand. Once demand increases corporation will expand regardless of their tax situation
Actually, the CEO said so on TV as the new tax plans were being announced to the utter surprise of the Trump administration. Because that’s what CEOs were doing before the tax cuts. CEO average 3/4 years on the job. Almost no project will generate a significant increase in income…so reduce outstanding shares and increase the dividends is the BEST way of increasing share price…and hence value to investors (look how well that’s worked for GE)