EsThe U.S. trade-in-goods deficit climbed 17.1% on a year earlier in February, Panjiva analysis of official data shows, to reach $75.4 billion. That was the highest since at least 2007, though it was below the level expected by economists ($76.4 billion) for the first time since August according to S&P Global Capital IQ figures.
Import growth of 10.8% was driven by a mixture of maritime shipments – as outlined in Panjiva research of March 15 – as well as accelerating prices. It was also the fastest rate of growth since March 2017. Export growth was still healthy at 6.6%, but not significantly different to the 6.6% rate averaged in the past 12 months.
Source: Panjiva
At the product level import growth was driven by a rise in capital goods (which were 13.1% higher) and consumer goods (up 12.8%). That likely reflects continued consumer and business confidence.
The negative impact from trade from protectionism was not significant – the only major products subject to new duties in the month were washing machines and solar panels. That may begin to turn in late March and early April as duties on metals (under the section 232 review) and in due course Chinese technology and machinery exports (section 301) begin to bite.
In the meantime should this could growth in the trade deficit be repeated for the combined goods-and-services figure due on April 5 the Trump administration may be tempted to look for further import-restricting measures.
Source: Panjiva
