US Trade Balance

US Trade Balance

Source: US Bureau of Economic Analysis and U.S. Bureau of the Census, Trade Balance: Goods and Services, Balance of Payments Basis [BOPGSTB], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/BOPGSTB, January 7, 2017.

WASHINGTON (AP) — The US trade deficit in November rose to the highest level in nine months as imports of oil and other foreign goods increased, while American exports fell for a second month.

The trade deficit jumped 6.8 percent to $45.2 billion, the largest imbalance since February, the Commerce Department reported Friday. Exports edged down 0.2 percent to $122.4 billion, reflecting lower overseas sales of American-made airplanes, autos and farm products. Imports rose 1.1 percent to $231.1 billion, led by a 7.6 percent jump in oil.

President-elect Donald Trump made America’s large trade deficits a central part of his campaign. He promised to impose high tariffs on countries such as China and Mexico unless they reformed what Trump charged were unfair trading practices that have cost millions of American jobs.

A lower deficit adds to the overall economy because it means American companies are selling more to foreign countries than Americans are importing from abroad. The deficit is the difference between exports and imports.