WASHINGTON (AP) – The U.S. trade deficit jumped in January to the highest level in nearly five years as a flood of mobile phones and other consumer products widened America’s trade gap with China. The result underscores the challenges facing President Donald Trump in fulfilling a campaign pledge to reduce America’s trade deficits.
The deficit in January rose 9.6 percent to $48.5 billion, up from a December deficit of $44.3 billion, the Commerce Department reported Tuesday. It was the largest monthly gap since a deficit of $50.2 billion in March 2012.
U.S. exports edged up a slight 0.6 percent to $192.1 billion, helped by stronger auto sales. But that was swamped by a 2.3 percent surge in imports to $240.6 billion, led by mobile phones, oil and foreign-made cars.
During the campaign, Trump pledged to attack America’s persistent trade deficits, which he blamed for the loss of millions of good-paying factory jobs. He has threatened to slap punitive tariffs on imports from China, Mexico and other nations he has accused of trading unfairly. But economists worry that Trump’s tough talk could spark all-out trade wars in which foreign nations retaliate by boosting their tariffs on American goods.
White House trade adviser Peter Navarro, a long-time critic of China’s trade practices, told an economists’ group on Monday that reducing America’s trade deficits would deliver stronger economic growth and improve national security.