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US trade deficit in 2017 hit a new high in 9 years

日期: 2018-03-03
浏览次数: 45

According to the latest statistics released by the US Department of Commerce on the 6th, the US trade deficit in 2017 hit a record high in nine years, which means that the Trump administration’s “US priority” policy aimed at narrowing the trade deficit has completely failed.


Statistics show that the US trade deficit in goods and services surged by 12.1% in 2017, reaching US$566 billion, a record high since 2008; its share of GDP was 2.9%, also higher than 2016. 2.7% of the year.


The data also showed that the US-China trade deficit increased by 8.1% last year to US$375.2 billion, but the increase was lower than the overall US trade deficit increase.


The main reason for the rapid rise in the US trade deficit last year was that the US economy was stronger and the import growth rate was higher than that of exports. Last year, US exports increased by 5.5% to $2.33 trillion; imports increased by 6.7% to a record $2.9 trillion.


After Trump became the president of the United States, he promoted the rapid growth of the US economy through stimulus measures such as tax cuts. On the other hand, he promoted the "US priority" trade policy and tried to reduce the US trade deficit. However, the latest trade data highlights that there is an irreconcilable contradiction between these two goals.


This is because the faster growth of the US economy depends on an increase in consumption of about 70% of the economy, and an increase in consumption will inevitably lead to an increase in imports. In the national economic accounting, imports are regarded as a drag on economic growth. The faster the import growth rate, the lower the overall economic growth rate.


According to statistics from the US Department of Commerce, the US economy grew by 2.6% year-on-year in the fourth quarter of 2017, with net exports being the biggest drag and a negative contribution to the economy of 1.13 percentage points.


Analysts believe that the latest trade statistics will bring more pressure on the Trump administration's trade policy. At present, the Trump administration is arduously negotiating with Canada and Mexico to update the North American Free Trade Agreement, and frequently uses unilateral trade tools to launch various trade investigations with major trading partners such as China.


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