https://www.wsj.com/articles/u-s-trade-d...1536151063

Quote:The U.S. trade deficit posted its biggest monthly increase in almost three and a half years in July, as tax cuts and higher federal spending goosed up domestic demand while a cooling economy overseas hampered exports.

The trade shortfall in goods and services widened by 9.5% from June to a seasonally adjusted $50.08 billion in July, the Commerce Department said Wednesday. U.S. exports sank 1% from June, while imports rose 0.9% on the month.

Economists surveyed by The Wall Street Journal had expected the deficit to hit $50.3 billion.

I believe the takeaway from this article is 1) U.S. consumer and business demand stronger vs the rest of the world which puts downward pressure on prices for goods and services from foreign countries and 2) stronger dollar vs foreign currency is making goods more expensive domestically vs the imports.

(09-05-2018 09:51 AM)miko33 Wrote:  https://www.wsj.com/articles/u-s-trade-d...1536151063

Quote:The U.S. trade deficit posted its biggest monthly increase in almost three and a half years in July, as tax cuts and higher federal spending goosed up domestic demand while a cooling economy overseas hampered exports.

The trade shortfall in goods and services widened by 9.5% from June to a seasonally adjusted $50.08 billion in July, the Commerce Department said Wednesday. U.S. exports sank 1% from June, while imports rose 0.9% on the month.

Economists surveyed by The Wall Street Journal had expected the deficit to hit $50.3 billion.

I believe the takeaway from this article is 1) U.S. consumer and business demand stronger vs the rest of the world which puts downward pressure on prices for goods and services from foreign countries and 2) stronger dollar vs foreign currency is making goods more expensive domestically vs the imports.

That and retaliatory action to the tariffs. Overall I see nothing to worry about at the moment.

(09-05-2018 11:47 AM)200yrs2late Wrote:  

(09-05-2018 09:51 AM)miko33 Wrote:  https://www.wsj.com/articles/u-s-trade-d...1536151063

Quote:The U.S. trade deficit posted its biggest monthly increase in almost three and a half years in July, as tax cuts and higher federal spending goosed up domestic demand while a cooling economy overseas hampered exports.

The trade shortfall in goods and services widened by 9.5% from June to a seasonally adjusted $50.08 billion in July, the Commerce Department said Wednesday. U.S. exports sank 1% from June, while imports rose 0.9% on the month.

Economists surveyed by The Wall Street Journal had expected the deficit to hit $50.3 billion.

I believe the takeaway from this article is 1) U.S. consumer and business demand stronger vs the rest of the world which puts downward pressure on prices for goods and services from foreign countries and 2) stronger dollar vs foreign currency is making goods more expensive domestically vs the imports.

That and retaliatory action to the tariffs. Overall I see nothing to worry about at the moment.

For the short term, this is good news. Its just not sustainable.

And the new trade deals havent had a chance to take effect. Also, Trump is about to smash China over the head again, and that wont show up for a couple of months on this report. (Although their stock market will likely take an immediate hit. )

We will see how it unfolds. Short term, the narrowed gap was due to farmers and others rushing their products to export before tariffs kicked in. The biggest headwind is still the strength of the U.S. market relative to the rest of the world.

(09-06-2018 08:52 AM)miko33 Wrote:  We will see how it unfolds. Short term, the narrowed gap was due to farmers and others rushing their products to export before tariffs kicked in. The biggest headwind is still the strength of the U.S. market relative to the rest of the world.

We have a winner. Since most dems subscribe to a different economic theory, most would be thrilled with a weak US economy and continued trade deficits. All Trump has to do is not blink and all of the trade situation works out in the US's favor.