The U.S. trade gap with China shrank in the first two months of the year but remains far higher than a decade ago, part of a mixed trade outlook that sets the stage for potentially tense talks between President Donald Trump and Chinese leader Xi Jinping this week.
The overall U.S. trade gap with other countries narrowed nearly 10% in February from a month earlier to $43.6 billion, the Commerce Department said Tuesday. The gap was slightly smaller than economists surveyed by The Wall Street Journal had projected.
Meanwhile, the U.S. trade gap with one of its biggest trading partners, China, has narrowed nearly 5% in the first two months of this year compared with the same period a year earlier. Economists cautioned that trade data is particularly volatile and the latest month of figures may have been distorted by the timing of the Lunar New Year.
Despite the shift, the U.S. has a trade gap with China that is far bigger than it has with other nations. The deficit has grown more than 40% over the last decade. The saving rate in the U.S. is relatively low and consumer spending high, and many American households and companies have imported goods from China as they step up spending on household items and other materials.
Mr. Trump and Mr. Xi are set to meet Thursday, and a Commerce Department official said Tuesday he expects trade to be a big part of the discussion. full story
