US Trade Deficit Decreases for the First Time in 6 Years

[Asia Economy New York=Correspondent Baek Jong-min] The United States' trade deficit decreased for the first time in six years last year.

The U.S. Department of Commerce announced on the 5th (local time) that the trade deficit in December last year increased by $5.2 billion (11.9%) compared to the previous month, reaching approximately $48.9 billion.

On an annual basis, the trade deficit was $616.8 billion, down 1.7% from the previous year. This was due to a sharp decline in imports (-1.7%) exceeding the decrease in exports (-1.3%).

The goods balance posted a deficit of $888.6 billion, down 2.4% from the previous year. The goods trade deficit with China sharply declined by 17.6% to $345.6 billion, marking the lowest level since 2014. Exports to China decreased by 11.3%, and imports from China fell by 16.2%. This was due to the U.S. government imposing tariffs on Chinese goods, significantly reducing imports.

While this indicator can be interpreted as the Trump administration's policy stance leading to improvements in trade figures, some argue that it cannot be given much significance since the main reason was a decrease in imports rather than an increase in exports.

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