U.S. Trade Deficit, Driven by Record Imports, Hits Decade High in October
December 6, 2018
The gap between what the U.S. sells and buys from foreign countries grew by 1.7 percent in October, to a seasonally adjusted $55.5 billion. This marks the fifth straight month that has seen an increase, and the widest gap since October 2008.
Overall imports increased by 0.2 percent to a record-breaking $266.5 billion. Medicine and cars were the most imported items. Economists attribute the trade deficit to the recent tax cuts, as more Americans have more money to spend, and the relative strength of the American dollar. With the American dollar worth more when compared to other currencies, it makes it cheaper for U.S. consumers to buy foreign goods, and more expensive for other countries to import U.S. goods.