Trade with China is something that was a constant matter in the campaign that Donald Trump had and it is fairly expected due to the fact his business brains can produce better quality ideas so the economic failures in the relationship can be fixed. The US trade deficit widened in October but segued to be smaller than a year earlier, and included a big step in exports to China, according to the Commerce Department.
The overall trade deficit in October grew almost to 18 percent to $42.6 billion, an increase of $6.4 billion from the month prior to that.
The deficit was 2.1 percent lower than October 2015, and for the year-to-date the trade gap is tracking about $10 billion lower than the initial 10 months of 2015.
Trade with China stood out as US exports in the latest month got to their highest level since December 2013 at $13 billion. But we need to mention that imports from China were at their highest since October of last year at $44.3 billion.
The deficit with China shrank 4.2 percent to 31.1 billion, in part thanks to a 27 percent rise in US passenger car exports to $939 million.
Total US exports fell $3.4 billion to $186.4 billion as international sales of soybeans and corn fell 30 percent and 36 percent, expectedly. Civilian aircraft engine sales were up nearly 5.0 percent to $3.2 billion however exports of aircraft fell 9.5 percent $5.3 billion.
Trump is an idea machine due to his business brain on how to lower the deficit with China, giving the fact the unfair trade practices build up the deficit still. His intention is to initially instruct the Treasury Secretary to label China a currency manipulator, then instruct the U.S. Trade Representative to bring trade cases against China, both in this country and at the WTO because “China’s unfair subsidy behavior is prohibited by the terms of its entrance to the WTO,” and ultimately “Use every lawful presidential power to remedy trade disputes if China does not stop its illegal activities, including its theft of American trade secrets – including the application of tariffs consistent with Section 201 and 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962.”
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