A new report from the Commerce Department on Friday delivered a decisive blow to what has been among President Donald Trump’s chief promises while on the campaign trail.
According to the report, the U.S. goods trade deficit had widened to its highest point in more than a year as of June, with U.S. exports shrinking by 5.4% when compared with May and imports rising by 3.6%.
Trump has long promised to shrink the United States’ trade deficit, with his so-called reciprocal tariffs implemented in large part to “rectify trade practices” that contributed to the United States’ “large and persistent annual goods trade deficits.” According to the new data from his own administration, however, the tariffs may have widened the United States’ trade deficit.
“The shortfall in goods trade grew 27.4% from the prior month to $105.8 billion, Commerce Department data showed Friday,” Bloomberg reported.
“The figure isn’t adjusted for inflation. The median estimate in a Bloomberg survey of economists called for an $85 billion deficit. Imports of consumer goods rose to the highest level in six months. A separate report Thursday showed U.S. consumer spending accelerated in May even as prices rose at the fastest pace in more than three years.”
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