U.S. Trade Deficit with China Increases $9 Billion
The trade deficit with China increased $9.0 billion to $26 billion in the month of April.
Exports to China in April increased $2.1 billion to $9.3 billion while imports from China increased $11.0 billion to $35.2 billion.
In the previous two months, the United State’s trade deficit with China had decreased over $8 billion. Trade deficits with China are expected to continue to decrease as China committed to importing an additional $200 billion from the United States in the Phase One Trade Deal signed this past January. However, the unexpected effects of the COVID-19 pandemic plus the growing tensions with China amid Hong Kong relations have left the efficacy of the deal in question.
Declines in exports and imports in total increased the United State’s deficit 16.7% to $49.4 Billion. The Bureau of Economic Analysis says this is in part “due to the impact of COVID-19, as many businesses were operating at limited capacity or ceased operations completely”.