The Commerce Department International Trade report for January shows the US trade deficit with the rest of the world increased to $-56.6 billion from a revised higher $55.1 billion in December.
Trade Highlights
- January exports were $200.9 billion, $2.7 billion less than December exports.
- January imports were $257.5 billion, down less than $0.1 billion from December imports.
- The January increase in the goods and services deficit reflected an increase in the goods deficit of $2.8 billion to $76.5 billion and an increase in the services surplus of $0.1 billion to $19.9 billion.
- Year-over-year, the goods and services deficit increased $7.9 billion, or 16.2 percent, from January 2017. Exports increased $9.7 billion or 5.1 percent. Imports increased $17.6 billion or 7.4 percent.
Goods Exports
Exports of goods on a Census basis decreased $3.3 billion.
- Capital goods decreased $2.6 billion.
- Industrial supplies and materials decreased $1.3 billion.
- Other goods decreased $1.0 billion.
- Consumer goods increased $1.2 billion (Artwork, antiques, stamps, and other collectibles increased $0.5 billion. Pharmaceutical preparations increased $0.4 billion.)
We are exporting more antiques. Lovely. That will get the economy humming.
Goods Imports
Imports of goods on a Census basis decreased $0.3 billion.
- Capital goods decreased $1.3 billion.
- Consumer goods decreased $0.9 billion. (Cell phones and other household goods decreased $1.2 billion).
- Industrial supplies and materials increased $2.0 billion.
Goods by Selected Countries and Areas
- The January figures show surpluses, in billions of dollars, with Hong Kong ($2.6), South and Central America ($2.4), Singapore ($0.9), Brazil ($0.5), and United Kingdom ($0.3).
- Deficits were recorded, in billions of dollars, with China ($35.5), European Union ($15.0), Germany ($6.3), Mexico ($5.6), Japan ($5.6), Italy ($2.8), OPEC ($2.5), India ($1.8), Taiwan ($1.5), Canada ($1.5), South Korea ($1.5), France ($1.4), and Saudi Arabia ($0.6).
The Econoday consensus was for the trade deficit to widen to $-55.1 billion from $53.1 billion. The consensus range was $-56.1 billion to $-52.8 billion. The report was outside the range. Trump will howl.
It’s shocking, but somehow Econoday did not find hidden strength in antiques.
Suggestions
Let’s invade Canada over that $1.5 billion. We need to go after Italian shoes too. To hell with it. Just stop all imports and export more antiques and drugs.
Mike “Mish” Shedlock
Examining the impact by state, CNN shows that in Ohio alone, the steel tariff will help protect 11,400 workers in the steel and aluminum industries, but will put at risk 410,300 jobs in industries that use aluminum and steel in manufacturing finished products. link to cnn.com
Well. They are panic buying steel now.
Another bogus argument. The manufacturing jobs were taken up by the very people who were displaced by the modernization of agriculture. The same is not true in case of the tech jobs replacing manufacturing jobs. One, the new jobs are in distant places (how many of these jobs are in the Rust Belt?) and they are being held by people other than those who were displaced.
That is what makes this crisis fundamentally different. Those who want to wish it away or think they can whistle their way through it are just now being surprised by the consequences of what has happened. They are in for more surprises in the future. And they will have only their denial and arrogance to blame for it.
Bingo on This!
The Buggy Whip companies in the US were replaced by Automobile companies – IN THE US. It is not as if the Buggy Whip jobs were exported to a foreign country and people had to buy them using their credit cards. Your intellectual dishonesty is glaringly obvious.
Might have saved one of the last companies in the whip trade…….fine American craftsmanship link to vimeo.com
The United States became the greatest economy in history by becoming a manufacturing power. Manufacturing jobs (after years of labor struggle) came to pay living wage jobs that would support a family. The loss of millions of manufacturing jobs through globalization has had devastating effects to the United States. Other countries like Germany and China understand the importance of manufacturing. They do not export their jobs, instead they protect their jobs. Globalization has been great for corporate profits, but bad for millions of American workers. Exporting products made in USA is good. Exporting jobs is bad- for the economy and society.