Foreign media: The widening of the US trade deficit to a 6-month high will weaken the country's economic growth. Trade | US | Economy
The US trade deficit widened to a 6-month high in April
According to Reuters on June 7th, the widening of the US trade deficit in April was the largest in 8 years and the highest level in 6 months. Experts analyze that this trend will continue, leading to trade dragging down US economic growth in the second quarter.
According to data released by the US Department of Commerce on the 7th, the US trade deficit jumped by 23.0% to $74.6 billion in April, the largest increase since April 2015. In April, overall US exports decreased by 3.6% to $249 billion, while commodity exports plummeted by 5.3% to $167.1 billion, both of which were the largest declines in three years. Meanwhile, driven by motor vehicles, components, and engines, commodity imports increased by 2.0% to $263.2 billion in April.
Economists predict that unless the import and export trade situation reverses, the US economy may approach stagnation in the second quarter. According to Rupkey, Chief Economist of FWDBONDS, a financial market research firm in the United States, the widening trade deficit may lead to a drop in GDP growth rate to less than 1% in the second quarter, and "the economy may fall off a cliff.".
Analysts also suggest that as the US dollar gradually rebounds in recent weeks, the competitiveness of US made goods in the global market may decline. Against the backdrop of slowing global demand, this will further suppress US commodity exports.