US trade deficit narrows in March

US trade deficit narrows in March

NAFTA which was signed in 1994 by the United States, Canada and Mexico removed most trade and tariff barriers between the neighbors, but Trump and other critics have blamed it for deep US job cuts.

On Thursday, May 4, 2017, the Commerce Department reports on the USA trade gap for March. Statscan revised February's deficit to $1.08-billion from an initial $972-million. Exports increased 7.1 percent, in the time Imports increased 7.1 percent.

Year-to -date, the goods and services deficit increased 7.5 percent compared with the same period in 2016.

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Imports had risen in recent months on higher oil prices.

China's imports and exports are expected to stabilise and improve in the near future, the Ministry of Commerce said in its quarterly report on trends in the country's foreign trade.

The decrease in the goods and services deficit reflected an increase in the goods deficit of $0.4 billion to $65.5 billion and an increase in the services surplus of $0.4 billion to $21.8 billion.

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Rising oil import prices, which hit a near two-year record, helped fuel the trade deficit, which has become a central focus of the Trump administration's nationalist economic agenda.

Total exports fell 0.9 per cent for the month to US$191 billion, the biggest drop since October.

President Donald Trump was elected on a pledge to reduce America's trade deficits, which he blames on unfair trade practices by China and other countries.

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Consumer goods exports also rose 6.8 percent, with increased shipments of yellow peas and red lentils to India, and gold to China. Energy products rose 7.0 per cent, pushed up by higher natural gas flows to the United States and a spike in exports of coal to Asia that coincided with a slowdown in Australian production caused by a cyclone.

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