Thanks in part to a $2 billion drop in its trade deficit with China, the U.S. trade deficit dropped to a three-year low in November 2019.
As the Bureau of Economic Analysis reported on Tuesday, the deficit in international trade of goods and services amounted to $43.1 billion in November, the lowest level since October 2016.
While exports rose $1.4 billion to $208.6 billion in November, imports dropped $2.5 billion to $251.7 billion compared to the revised October figures. While the U.S. trade surplus in services remained relatively stable at $20.8 billion, the country’s deficit in international trade of goods decreased $3.9 billion, or 0.7 percent in the latest reading.
While decreasing slightly in November, the U.S. deficit with China remains by far the largest at $25.6 billion, with Mexico ($8.5 billion) and Japan ($5.7 billion) the closest contenders. The Trump administration’s tough stance vis-à-vis China appears to be paying dividends though, assuming the goal was to reduce the deficit.
Looking at January through November figures, the deficit with China declined by more than $60 billion in 2019, a trend that was partly offset by growing deficits with Mexico (+$20 billion), the European Union (+$10 billion) and Taiwan (+$7 billion).
This article and chart originally appeared on the blog of Statista, a data firm, and is republished with permission.