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Stock impact report

Why the U.S.-China Trade Deficit Keeps Growing Despite Trump’s Tariffs [Fortune]

Pinduoduo Inc. - American Depositary Shares (PDD) 
Company Research Source: Fortune
One of the great ironies of the U.S.-China trade war is that, since March, when president Donald Trump began slapping tariffs on Chinese imports, America’s merchandise trade deficit with China has grown bigger, not smaller. As Financial Times’ Gillian Tett points out in this excellent column Friday, America’s September merchandise trade deficit with China jumped 4.3% to a seasonally adjusted $37 billion—a record high. The increase reflected an 8% rise in U.S. imports from China, while U.S. exports to China remained flat. And that wasn’t a monthly blip. In the third quarter, America’s deficit with China soared to $106 billion, up from $93 billion in the same period last year. For the year to September, America’s trade deficit with China has ballooned to $305 billion, up from $276.6 billion last year. What’s going on? Tett ticks through the reasons for the widening gap: the U.S. economy is firing on all cylinders and sucking in more Chinese imports as it gro Show less Read more
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