Global Economics

Trade Gap Widens More Than Expected: Expect More Trump Howls

Economists expected the trade gap to increase, but the results were even worse, with falling exports the main culprit.

The Commerce Department International Trade report for January shows the US trade deficit with the rest of the world increased to $-56.6 billion from a revised higher $55.1 billion in December.

Trade Highlights

Goods Exports

Exports of goods on a Census basis decreased $3.3 billion.

We are exporting more antiques. Lovely. That will get the economy humming.

Goods Imports

Imports of goods on a Census basis decreased $0.3 billion.

Goods by Selected Countries and Areas

The Econoday consensus was for the trade deficit to widen to $-55.1 billion from $53.1 billion. The consensus range was $-56.1 billion to $-52.8 billion. The report was outside the range. Trump will howl.

It's shocking, but somehow Econoday did not find hidden strength in antiques.

Suggestions

Let's invade Canada over that $1.5 billion. We need to go after Italian shoes too. To hell with it. Just stop all imports and export more antiques and drugs.

Mike "Mish" Shedlock

14 Responses

  • AWC

    Mar 7, 2018

    Looks like the Fed will need to back off on those rate hikes. Gonna have big Tariffs to monetize.

  • AWC

    Mar 7, 2018

    Inflate, or die. Those are their only choices.

  • philbq

    Mar 7, 2018

    The United States became the greatest economy in history by becoming a manufacturing power. Manufacturing jobs (after years of labor struggle) came to pay living wage jobs that would support a family. The loss of millions of manufacturing jobs through globalization has had devastating effects to the United States. Other countries like Germany and China understand the importance of manufacturing. They do not export their jobs, instead they protect their jobs. Globalization has been great for corporate profits, but bad for millions of American workers. Exporting products made in USA is good. Exporting jobs is bad- for the economy and society.

  • AWC

    Mar 7, 2018

    I wonder if Tariffs could have saved the Buggy Whip manufacturing industry back in the beginnings of the automobile age?

  • Liberaldisdain

    Mar 7, 2018

    "Just stop all imports and export more antiques and drugs." The reason thats all we have left to export is due to globalist traitors who gutted our nation to build Asia.

  • flubber

    Mar 7, 2018

    Might have saved one of the last companies in the whip trade.......fine American craftsmanship https://vimeo.com/143781111

  • whirlaway

    Mar 7, 2018

    The Buggy Whip companies in the US were replaced by Automobile companies - IN THE US. It is not as if the Buggy Whip jobs were exported to a foreign country and people had to buy them using their credit cards. Your intellectual dishonesty is glaringly obvious.

  • Realist

    Mar 7, 2018

    Whirlaway said;” the buggy whip makers were replaced by auto and other manufacturers in the US”. And today, the manufacturers are being replaced by technology companies in the US. The tech companies in the US dwarf the manufacturers. Amazon, Apple, Microsoft, Google, Facebook, oracle, IBM, etc. Good old American ingenuity. Creating the jobs of the future. Yet, there will always be those who want to go back to the good old days when one could make a good living working for the buggy whip company or typewriter manufacturer.

  • Mike Mish Shedlock

    Mar 7, 2018

    Bingo on This!

  • Realist

    Mar 8, 2018

    Thanks Mish. Will there even be many jobs left in manufacturing, anywhere in the world, in 20 years? Just like farming went from 90% to 2%, manufacturing will go from 32% (1953) to 8.5% (today) to 2% (in 20 years). Trying to protect or bring back these jobs is an exercise in futility. Trying to blame this on other countries is misplaced anger. But hey, if it gets you elected....

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