On Thursday, the 6th of June 2019, data released from US Commerce Department had revealed that the US trade deficit had shrunk unexpectedly in April, almost entirely resulted by major topples in the exports and imports, while leading economists had reiterated following the reveal of the report that Washington’s “America First” policy was distancing United States from rest of the world when it came to trades.
More crucially, Thursday’s (June 6th) US Commerce Department’s report on trade deficit did not apprehend a recent exasperation of tariff war between US and Mexico, while it was largely based on an escalated trade spat with China.
As a matter of fact, earlier in May, trade tensions between the two global economic superpowers escalated sharply after US President Donald Trump had imposed an additional 25 percent levies on $200 billion worth of Chinese imports, which had later met with a Chinese retaliation of added levies on US imports worth of $60 billion.
Complicating the complexions of US international trade relations further, out of the blue, US President Donald Trump last week had threatened Mexico with an additional 5 percent tariff on all of Mexican imports, unless Mexican far-right wing government of Miguel Lopez Obrador stepped up its effort to curb illegal immigrant flow into United States through its southern border.
Adding that the US economy had become more and more vulnerable to big hits amid rising trade tensions on multiple fronts, a chief economist at MUFG, Chris Rupkey said, “U.S. trade with the world is slowing dramatically and the odds are rising that the economy is going to take a big hit.
Globalization and expanded trade between nations benefited everyone and now the reductions in trade volumes between nations are going to subtract those benefits worldwide from everyone”. Citing statistics from US Commerce Department, US trade deficit had dropped by 2.1 percent to $50.8 billion in April, while an economists’ poll had forecasted the trade gap to be $50.7 billion in April.