American trade deficit ascends to more than nine-year maximum

American trade deficit ascends to more than nine-year maximum

In January, the American trade deficit inched up to a more than nine-year maximum, with the shortfall with China extending abruptly, hinting that President Donald Trump's "America First" trade stance won’t probably affect the US deficit.

On Wednesday, the Commerce Department revealed that the trade gap headed north 5% reaching $56.6 billion. It appeared to be the highest value since October 2008, following a moderately upwardly updated $53.9 billion dive in December.

Financial analysts surveyed by Reuters had predicted the trade gap extending to about $55.1 billion in January versus a previously posted $53.1 billion in December.

The politically fragile trade deficit with China tacked on 16.7% hitting 36.0 billion, which appears to be the most impressive result since September 2015. As for the deficit with Canada, it demonstrated the highest outcome for the last three years.

The trade deficit keeps widening a year into the term of Donald Trump. Previously, he had told that his country was being taken advantage of by its quick-witted trading partners. As a result, in January Trump imposed heavy duties on imported solar panels as well as large washing machines.

The previous week Trump informed that he would impose import duties of 25% on steel along with 10% on aluminum for the purpose of protecting domestic manufacturers. While these actions might be generally appreciated by Trump's working class electoral base, in particular in states heavily affected by factory closures as well as import competition, market experts warn they could suppress economic growth.

Such fierce protectionist measures have generated fears of a trade conflict and could endanger negotiations on the North American Free Trade Agreement, which links Mexico, Canada and the United States. The US President initiated a renegotiation of the controversial trade agreement with the aim of offering terms more beneficial to the United States.


US Dollar Might Get Under Pressure After These Events
US Dollar Might Get Under Pressure After These Events

Today, two events will shake the US dollar. First, at 16:45 GMT+2, Markit, a statistical company, will release the US Flash Services PMI. Moreover, at 21:00 GMT+2, the Federal Reserve will release its meeting minutes.

Latest news

Chinese workers are on strike
Chinese workers are on strike

  Good morning, dear traders! Hope you’re doing great! Let’s talk about the news that is worth following today!  Key market events: 15:30 MT, CAD GDP m/m 17:00 MT, GBP BOE Gov Bailey Speaks Oil is tensed again Oil rose as China refined its approach…

How to trade the JPY?
How to trade the JPY?

Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:

FOMC Minutes Brought Insights
FOMC Minutes Brought Insights

Hello, dear traders! We hope you have a great day! Let’s see what news is worth following today! Market closing US stock exchanges will be closed due to the Thanksgiving holiday…

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera