Trade with China was a major component of Donald Trump’s platform, and ahead of him winning the election, we got some mixed news on trade with them. The US trade deficit widened in October but remained smaller than a year earlier, and included a big jump in exports to China, according to the Commerce Department.
The overall trade deficit in October grew nearly 18 percent to $42.6 billion, an increase of $6.4 billion from the month before.
The deficit was 2.1 percent lower than October 2015, and for the year-to-date the trade gap is tracking about $10 billion lower than the first 10 months of 2015.
Trade with China stood out as US exports in the latest month reached their highest level since December 2013 at $13 billion. However, imports from China were at their highest since October of last year at $44.3 billion.
The deficit with China shrank 4.2 percent to 31.1 billion, in part due to a 27 percent rise in US passenger car exports to $939 million.
Total US exports fell $3.4 billion to $186.4 billion as international sales of soybeans and corn fell 30 percent and 36 percent, respectively. Civilian aircraft engine sales were up nearly 5.0 percent to $3.2 billion but exports of aircraft fell 9.5 percent $5.3 billion.
Trump has a number of ideas to reduce the trade deficit with China, as unfair trade practices contribute to the deficit. His plan is to first instruct the Treasury Secretary to label China a currency manipulator, then instruct the U.S. Trade Representative to bring trade cases against China, both in this country and at the WTO because “China’s unfair subsidy behavior is prohibited by the terms of its entrance to the WTO,” and lastly “Use every lawful presidential power to remedy trade disputes if China does not stop its illegal activities, including its theft of American trade secrets – including the application of tariffs consistent with Section 201 and 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962.”
H/T Breitbart
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