US Trade Deficit Plunges Most In 10 Years - Is Trump Winning?

Confirming the advance trade balance, it could be argued - by those of a particular persuasion - that Trump's trade policies are working as the US trade deficit has collapsed to its lowest since September 2016.

The US trade balance for May printed a smaller deficit than expected at $43.1 bn (vs $43.6bn exp) and well down from the revised $46.1bn in April.

This is the lowest trade deficit since October 2016 and biggest 3-month reduction in the deficit in 10 years.

Exports of goods and services climbed to a record high, outpacing a pickup in imports.

Under the hood, the biggest driver of the improvement was US soybean exports rose 90% MoM in May, which looks like pre-emptive buying ahead of China sanctions, and is likely reversed next month.

Overall exports increased 1.9 percent to $215.3 billion as soybean shipments overseas almost doubled to $4.1 billion. Exports of civilian aircraft, a category that tends to be volatile, rose $1.9 billion in May.

Imports rose 0.4 percent to $258.4 billion, boosted by a record value of capital goods shipments from overseas.

However, the report also showed the trade gap with China, the world's second-biggest economy, widened to $32 billion in May from $30.8 billion.

This is the biggest trade gap with China for a May since records began.

Finally, ex-Petroleum, this is the smallest trade deficit since March 2017...

 

We would expected to see GDP models updated positively shortly as improvement in the trade gap may be a positive for second- quarter growth.

Comments

mad mad world Fri, 07/06/2018 - 08:50 Permalink

For now, yes, I said he and us is winning. Be patience, winning without difficulties isn't winning. Just think no pain no gain. He can't fix decades of wrongs in 1 or 2 term. MAGA!

bshirley1968 dirty fingernails Fri, 07/06/2018 - 09:03 Permalink

Did anyone happen to see what the trade deficit was like back in 2008.

Look at all the good that did us. But I know, I know "Winning" and all that other shit, blah, blah, blah.......in reality it should be ba, ba, ba.....for all you sheeple out there.

Edit: Why all the down votes? Did I not just point out the facts? Oh! Some of you Trumptards didn't like the sheeple reference. Well don't be one and it won't bother you so much.

In reply to by dirty fingernails

bshirley1968 Four Star Fri, 07/06/2018 - 09:25 Permalink

Looks like things really changed about the time the gold standard was completely destroyed......and dollar reserve status.

Also, describing 21st century trade in terms of "imports and exports" is just complete bullshit. Major countries have production inside other countries and sell direct without having to "export or import". Looking at only import/export numbers is like only counting passing yards and not rushing yards to get total yards gained.

In reply to by Four Star

new game rwe2late Fri, 07/06/2018 - 09:26 Permalink

currency manipulators will manipulate. back door wide open as china does what they do best-cheat.

best cheaters on planet earth. culture of deception. they don't even consider lie a lie, just a way of life.

steal, cheat, lie and we delivered on golden platter by oligarchs beholden to moar profit via cheap labor.

complict is the congress of US with wto bullshit trade agreements. ross perot nailed it 25 years ago.

the sucking sound was amplified when monaca got on her knees and billy pushed thru the wto complict

with unions, as where was their clout and stoppage of the wto? (union)  betrayal of union workers.

screwd again....screwed every which way by who? same fukers still screwing the average guy-list is long

with bankers/fed at top of hierarchy...

In reply to by rwe2late

Knave Dave dirty fingernails Fri, 07/06/2018 - 10:03 Permalink

Exactly. In an economy that gorges on soy beans, every buyer in China said last month, "These things don't have to be stored in silos. Get me any clean, dry warehouse you can find, and we'll start piling the soy beans inside. Order any soy bean you can find because next month they will all be 25% higher!" Rinse and repeat for every other product that China imports from the US.

In reply to by dirty fingernails

AGuy dirty fingernails Fri, 07/06/2018 - 13:18 Permalink

Yes, Wait for the Huuge new Tax Revenue increases setting a new all time high, as the tariffs add to tax revenue. The Stealth Trumpet tax increase: Biggest since FDR! Liberals will be dancing in the streets.

Trumpet is the first president to enact a US VAT tax. at 25% its matches the EU VAX tax rates. Go Trumpet: Make America the most heavily taxed nation in the World! /sarc

In reply to by dirty fingernails

Didymos mad mad world Fri, 07/06/2018 - 09:32 Permalink

The rules in The Art of the Deal:
 

  1. Think big
  2. Protect the downside and the upside will take care of itself
  3. Maximize your options
  4. Know your market
  5. Use your leverage
  6. Enhance your location
  7. Get the word out
  8. Fight back
  9. Deliver the goods
  10. Contain the costs
  11. Have fun

I feel like he's following his own advice and applying it as best he can to the American economy.  You can't continue to get rich if you destroy the economy.  While establishment politicians and banksters try to squeeze the economy dry (after which they will flee to a better economy and start over), Trump knows that fucking the economy for the middle and lower class is hamstringing yourself.

While I used to think Trump was a monster, I got over it.  I don't agree with a lot of what he says, but I'm a fan of the outcome of his policies so far.

In reply to by mad mad world

charlewar Fri, 07/06/2018 - 08:51 Permalink

Is Trump winning? That depends on how msm spins it (they don't like pos hussein obama💩 being made to look bad).

 

Lets see how many pos hussein obama💩 followers this post pisses off! 😈

lew1024 Itdoesntmatter Fri, 07/06/2018 - 09:10 Permalink

Ignorant, yes, we are all equally ignorant, our individual knowledge relative to knowledge in books and journals and newspapers out to about 20 decimal points to the right of zero. We each have different knowledge sets, and human progress has been learning to take advantage of the specialization.

Some of us don't think as clearly as others, we all have blind spots, you could interpret that as gullible and stupid.

But you would be wrong, and in any case human progress has been learning to compensate for each other's bad judgements.

Of course this is mostly due to imports falling so fast due to consumer spending being down and so many stores closing, and exports temporarily up to beat all the tariffs being imposed.

But probably Trump's policy and tax changes are having an effect also.

People seriously underestimate Trump. He studied politics under Nixon's tutelage, they were personal friends, you know?

He is winning, tho so slowly, you do realize? And that if he stops winning, the shooting will start?

We all should be pulling for his success.

In reply to by Itdoesntmatter

CashMcCall Fri, 07/06/2018 - 09:01 Permalink

Absolute insanity and I mean real insanity on Trump's Part. Name your argument Trump^ards, and I can demolish it. How about "FAIR TRADE"? Trump thinks this is Parody Trade and that is a Mercantilist debunked dumb argument.

For example, I make a Cancer drug that cures 90% of all cancers by stopping metastasis. My company is located at the North Pole. Our exchange currency is the "Snowball". In my first year my product sold $100 Billion doses globally for $100K a pop.

Trump just looked at the North Pole Balance of Trade. $100 Billion v. $100 of US products. He now wants me to buy a $100 Billion from the US or he will slap a 100% tariff on my drug. Do I care? No. My drug sells because people want it. My drug increases the standard of living in the USA. Trump slaps the Tariff on my drug saying National Security Risk because USA Big Pharma cancer drugs are going out of business. They can't compete with my product.

Americans will go to Canada or other nations to seek my drug. Some in MERICA will be priced out because of Trump; their standard of living will collapse.

When Trump raises tariffs, the Snowball Currency devalues and my exports skyrocket to the world because of the dollar Reserve. US exports die on the vine.

Is my product fair trade? Yup it cures cancer it is fully disclosed, unlike Trump University which is Fraud Trade. Fair trade is the meeting of buyer and seller for mutual benefit it is not parody trade.

Want parody, then make products people want instead of trying to bully purchases by weaponizing the Dollar Reserve.

TrumpTard arguments are always vapid fallacies.