Record imports push up U.S. trade deficit
WASHINGTON — Record imports lifted the U.S. trade deficit to $48.7 billion in October, highest since January.
The Commerce Department said Tuesday the trade gap rose 8.6 percent in October from $44.9 billion in September. Imports hit a record $244.6 billion in October, and exports were flat at $195.9 billion.
A trade deficit means that the United States is buying more goods and services from other countries than it is selling them. A rising trade gap reduces U.S. economic growth.
President Donald Trump views America’s massive trade deficits as a sign of economic weakness. He blames them on bad trade deals and abusive practices by China and other trade partners. Conventional economists argue that trade deficits are largely caused not by flawed trade agreements or cheating by particular countries but by a bigger economic force: Americans spend more than they produce, and imports have to fill in the gap.
So far this year, the U.S. is running a trade deficit of $462.9 billion, up 11.9 percent from a year earlier. U.S. exports are up 5.3 percent this year; a weaker dollar has made U.S. goods less expensive overseas. Imports are up 6.5 percent the first 10 months of 2017.
The politically sensitive trade deficit with China rose 1.7 percent to $35.2 billion from September to October and is up 7 percent this year to $309 billion.
On Wall Street Tuesday, another afternoon fizzle for stocks left the Standard & Poor’s 500 index with its third straight loss.
The market’s ups and downs have come as investors sift through Congress’ twin proposals to revamp the tax system. The Senate and House are trying to reconcile their respective versions before sending a final bill to Trump for his approval, and investors are trying to figure out which industries and companies will benefit and which won’t.