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US trade deficit with China reached a record value in September

US trade deficit

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The US trade deficit with China reached a record 40.2 billion USD in September, according to the data released by the Ministry of Commerce.

At the same time, the total US trade deficit grew to a seven-month high in September amid a record high import. This is due to the strong local demand, which is able to compensate for the recovery of exports.

The ministry said the country’s total trade deficit rose by 1.3% to 54 billion USD, rising for the fourth consecutive month. The August data were also revised slightly upwards.

The economist expectations were for lower deficit to 53.6 billion USD.

The imports of goods and services grew by 1.5% in September to historical record of 266.6 billion USD. The import of capital goods, such as telecom equipment, aircraft engines and computers, also marks a record high. There is also growth in the import of toys, mobile phones, clothing and household goods.

The country’s deficit continues to increase despite the protectionist policies of the President Donald Trump, which has led the US in a trade conflict with China and some of its other partners, including the European Union, Canada and Mexico.

Last week the government announced that the country’s trade deficit declined by 1.78 percentage points of its gross domestic product in the third quarter of the year.

In turn, exports of goods and services also increased by 1.5% to 212.6 billion USD in September. The exports are increasing due to industrial goods and raw materials, which also record record values.

Since the beginning of the year, the trade deficit with Beijing has reached 301.4 billion USD. Meanwhile, soybean exports are down in September from the previous month to 744 million USD.

The deficit of goods and services with Russia has also risen to 1.7 billion USD, which is the largest value since May 2013.