On Wednesday, the 4th of September 2019, data released by US Commerce Department had revealed a slight moderation of trade gap, nonetheless, United States’ trade deficit with China hits a six-month-peak, jeopardizing a key priority of the US President Donald Trump and his administration’s “America First” policy.
In point of fact, Wednesday’s (Sept. 4th) US Commerce Department data came amid a calamitous backdrop when both United States and China heat up trade tensions much higher following an added tariff on each other’s goods from last Sunday (September 1st.
Meanwhile, fanning fears of a global recession, US President Donald Trump had been quoted saying yesterday (Sept. 3rd) that he would impose much higher tariff on Chinese goods, if Beijing had plans to drag trade talks down to 2020 US Presidential election.
According to US Commerce Department’s Wednesday’s (Sept. 4th) data, US trade deficit inched lower by 2.7 per cent to $54 billion, as exports had rebounded out of the blue and imports fell surprisingly, however, an analysts’ poll forecasted a trade gap to $53.5 billion in July.
More crucially, United States’ high-stake trade deficit with China surged 9.4 per cent to $32.8 billion on an unadjusted basis in July, breaching the trade parameter’s highest level since January, while voicing an offbeat tone on United States’ stance in its trade war with China, a chief economist at MUFG in New York, Chris Rupkey said, “Investors and the markets are unlikely to see any reprieve in the trade sanctions and tariffs and the Trump administration may even redouble their efforts to tame the massive red ink. It doesn’t look like America is winning the trade war. ”