Trump’s Losing Trade Wars – Auto and Other Deficits Grow

Click to enlarge.

The US international trade deficit in goods and services increased to $63.1 billion in October from $62.1 billion in September as imports increased more than exports.*

Despite magical thinking from the Trump Administration, the October imports of automotive vehicles, parts, and engines ($32.2 billion) were the highest since July 2019 ($32.4 billion). Worse, October imports from Mexico ($33.1 billion) were the highest on record. US vehicles sold in China are now at a distinct price disadvantage to European and Asian imports because of retaliatory tariffs. In fact, U.S. trade in goods with China year-to-date is a whopping -$25,289,400,000.

Imports

• October imports of goods ($206.6 billion) were the highest since August 2019 ($210.2 billion).
• October imports of capital goods ($56.9 billion) were the highest since August 2019 ($57.0 billion).
• October imports of automotive vehicles, parts, and engines ($32.2 billion) were the highest since July 2019 ($32.4 billion).
• October non-petroleum imports ($197.1 billion) were the highest since December 2018 ($199.8 billion).
• Real Dollar Basis (Chained 2012 Dollars, seasonally adjusted)
• October real dollar imports of goods ($233.7 billion) were the highest since August 2019 ($235.0 billion).

Balance

• The October deficit with Taiwan ($3.0 billion) was the highest on record.
• The October deficit with South Korea ($3.2 billion) was the highest since April 2016 ($3.3 billion).

Import Records

• October imports from Mexico ($33.1 billion) were the highest on record.
• October imports from South Korea ($7.3 billion) were the highest on record.
• October imports from Taiwan ($5.6 billion) were the highest on record.

*Based on the December 4, 2020, U.S. International Trade in Goods and Services, October 2020 report, released by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis.