America's trade deficit decreased by 6.5%, but Trump might increase it again
According to the US Census Bureau, the United States' trade deficit in goods and services decreased by approximately 6.5% from April to May ($46.1 billion to $43.1 billion). In fact, the US' exports of goods in May was the highest on record at $144.2 billion with foods, feeds, and beverages exports growing. The growth in foods, feeds, and beverages exports is part of a growing trend that started in January 2018.
However, this growing trend in exports may disappear as President Trump begins to institute more tariffs on foreign countries. Economist Joseph Gagnon explains that as widespread tariffs are instituted the ability of foreign countries to buy US exports will likely reduce since tariffs would increase the US dollar exchange rate. This increase in the US dollar exchange rate would make US exports more expensive than the exports of other countries. It's also important to mention that as other countries place retaliation tariffs on the US, it may become tougher for American companies to export goods overseas while remaining globally competitive with foreign competition.
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