US Trade Deficit Hit 1,5-year minimum

Forex News

The US trade deficit dropped to a one and a half year minimum in May thanks to improved exports and rising shipments of soybeans and commercial aircraft. According to the Commerce Department, the trade gap fell 6.6% to 43.1 billion dollars. April numbers were revised to indicate a drop to 46.1 billion dollars.

The forecast suggested that the trade gap would fall to 43.7 billion dollars. In terms of inflation, the trade split lowered from 77.5 billion dollars to 75.3 billion dollars, marking a yearly minimum.

Main obstacle to the economic improvement is the US-China trade war, which saw its first round today. The US evoked Section 301 tariffs on 34 billion dollar of Chinese goods. China said the action is threatening with "largest-scale trade war" and added that retaliation measures are ready.

US goods trade deficit with China rose 18.7% to 33.2 billion dollars in May. The deficit with Mexico surged 18.8%. Exports of goods and services increased 1.9% to a maximum of 215.3 billion dollars. Soybean exports were up 2.0 billion dollars. Imports of goods and services lifted 0.4% to 258.4 billion dollars in May.