USA trade gap widens in October on record imports

USA trade gap widens in October on record imports

USA trade gap widens in October on record imports

Statistics Canada says the country's merchandise trade deficit narrowed to $1.5 billion in October as exports improved and imports took a step back.

Year-to-date, the goods and services deficit increased $49.1 billion, or 11.9%, from the same period in 2016.

October imports were $244.6 billion, $3.8 billion more than September imports.

Goods and services from China totaled $48.2 billion, while European Union imports amounted to $39.4 billion and Mexico's exports grew to $28.7 billion, which are all record highs.

The U.S. crude oil imports rose to $10.664 billion in October from $9.131 billion in September.

United States imports of goods and services rose to the highest on record in October, widening the trade gap to its highest level in nine months, according to government data released on Tuesday (Dec 5).

Apart from the $1.5-billion increase in crude oil imports, the higher USA import bill was due to the highest on record imports of food, feeds, and beverages, and the highest on record non-petroleum imports.

Trump, who has been highly critical of the USA trade deficit with China, shifted responsibility for the gap to previous US administrations for failing to crack down on China amid widening trade gaps.

Exports also hit several high points with Mexico ($22.1 billion), the highest since October 2014, exports to Brazil were the highest since October 2014 and exports to China, $13 billion, were the highest since December 2013.

The politically sensitive trade deficit in goods with China rose 1.7 percent to $35.2 billion from September to October and is up 7 percent this year to $309 billion. But that was overwhelmed by a $69.1 billion deficit in the trade of goods.

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