American trade deficit heads north to six-month maximum

American trade deficit heads north to six-month maximum


In August, the American trade deficit rallied to a six-month maximum because exports slipped further in the face of slumping soybean shipments as well as imports reaching a record maximum, dropping a hint that trade could put pressure on economic rally in the third quarter.

On Friday, the Commerce Department revealed that the trade gap gained 6.4% reaching $53.2 billion, extending for a third straight month. July’s data was updated to disclose the trade deficit soaring to $50.0 billion versus the previously posted $50.1 billion.

The politically sensitive products trade deficit with China headed north by up to 4.7% hitting a record maximum of $38.6 billion.

Market experts interviewed by reporters had hoped the overall trade deficit would extend to about $53.5 billion in August.

The trade gap keeps widening notwithstanding the Trump administration's "America First" stance that has provoked a long-lasting trade clash between China and the United States.

The US government has also engaged in mutual import levies with the European bloc, Mexico, and Canada.

The current presidential administration told that eliminating the trade deficit will undoubtedly put the American economy on a sustainable path of faster surge.

When updated for inflation, in August, the trade gap extended to about $86.3 billion from July’s outcome of $82.4 billion, which appears to be the highest value since January 2006. The rally in the real trade deficit hints that in the first quarter trade could subtract nearly one percentage point from GDP.

As a matter of fact, trade contributed up to 1.2% percentage points to the American economy's 4.2 percent annualized surge temp in the second quarter, generally reflecting a front-loading of soybean exports to China before this country’s reciprocal duties came true early in July.

In August, exports of services and products slipped by 0.8% reaching $209.4 billion.





CPI Wednesday: the Doomsday for EURUSD and GBPUSD?
CPI Wednesday: the Doomsday for EURUSD and GBPUSD?

Today, the US Inflation release at 15:30 GMT+3 will determine the further destiny of the major pairs and gold. The event is highly impactful, as the Federal Reserve will make decisions regarding further rate hikes based on it. Also, we brought you some news about XAUUSD and GBPUSD. Stay tuned!

Latest news

No More US Debts in Sight
No More US Debts in Sight

The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.

Gold Rises as Central Banks Buy More
Gold Rises as Central Banks Buy More

About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.

US Evades Default This Time
US Evades Default This Time

Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!

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