The US trade deficit fell in 2019 for the first time in six years with imports and exports both shrinking, as Donald Trump’s trade war with China raised costs and cut supply chains between the world’s largest economies.
The overall US trade deficit in goods and services dropped 1.7 per cent from the previous year to $616.7bn, the commerce department said on Wednesday, marking the first drop since 2013. Exports fell 4 per cent to $249.3bn, while imports to the US declined 2.4 per cent to $865.9bn.
The reduction in the annual trade deficit will be claimed as a victory by Trump administration officials, since reducing the gap has been one of the US president’s longstanding goals, even if many economists believe that trade balances are not a good indicator of economic health.