In July the deficit grew to the highest level in five months. It rose 6.3% which will be a drag on the third quarter GDP number. A broad swath of goods exported from the U.S. fell for the second month in a row while imports rose. It is a sign of our strong economy and our weaker partners and it could be some retaliation from our trade partners not importing on purpose.
So far this year the trade gap rose 7% despite President Trump’s efforts to shrink it. Maybe the new trade deals will work, such as the one he negotiated with Mexico this week. Canada should be next, but it is the EU and China that will be the tough ones.
The trade gap will take years to close then. We can only hope for a shrinking gap at this point.