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USTR says China trade deficit shrinking, despite pandemic

The U.S. Trade Representative says despite the pandemic, the trade deficit with China is shrinking.  Robert Lighthizer released August trade data Tuesday, saying the trade deficit with China fell one-point-nine billion as exports to China rose and imports remained level as the Phase One Deal continues to take effect.  He says the goods trade deficit with China also decreased more than 16% from the same period in 2019.

Part of the Phase One Deal involves China purchasing U.S. agricultural goods.  Economists including John Newton at Farm Bureau have said China will have to step up purchases to meet obligations on time, which would further reduce the trade deficit.

Lighthizer says many trading partners were more negatively affected by the pandemic than the U.S. and despite COVID 19, the goods deficit is down 2.4% this year.  He says that would have been more than 6% if not for a large spike in gold imports for risk-hedging strategies.

Lighthizer says U.S. manufacturing wages have continued to rise despite the pandemic, and that the U.S. has already regained over half of the lost jobs since the start of COVID-19.

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