February Trade Deficit Lower as U.S. Exports Grew More Than Imports…

The Bureau of Economic Analysis (BEA) reports a much lower trade deficit than all economists predicted.  This is good news for the upcoming GDP growth report because the value of imported goods are deducted from GDP.

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $49.4 billion in February, down $1.8 billion from $51.1 billion in January. (read more)

The smaller overall trade deficit was primarily driven by a decrease in the deficit with China. The deficit with China decreased $3.1 billion to $30.1 billion in February.  As noted by Reuters: “It sounds like pencils are being sharpened in order to revise up first-quarter GDP forecasts,” said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto.

With little inflation in the U.S. economy it appears Trump’s tariffs on Chinese goods are essentially invisible to the consumer; likely being absorbed overseas in an effort to keep their prices low upon delivery. As the Trump administration negotiates on the world’s first ever Free Trade Agreement with China, the willingness/ability to execute additional tariffs provides ongoing leverage.

This entry was posted in Big Government, China, Communist, Decepticons, Economy, Election 2020, media bias, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

32 Responses to February Trade Deficit Lower as U.S. Exports Grew More Than Imports…

  1. AH_C, Boofer says:

    This is why I voted for Trump…

    [video src="https://media.8ch.net/file_store/25f643763ad3d03e5e9f398b6fa77498ae02cb39b007a8768b35c792c3c11748.mp4" /]

    Liked by 4 people

  2. buanadha says:

    still not tired of the winning 😉 Add in the fact that the economy continues to grow — stubbornly refusing to do what the “experts” have said it was going to do, and the economic winning feels awfully good 😉


  3. Sue Fowler says:

    Are the Chinese happy yet? And Maduro, what about those oil exports? Kill NAFTA and bring American jobs home.


  4. BV Conservative says:

    Just imagine how we’d be growing if Powell hadn’r bungled and pulled $50 billion a month from the economy through balance sheet unwinding. Now that that has stopped, look for growth to exceed forecasts. The stock market has picked up on this.


    • I have heard this before but do not understand what actually occurs during unwinding. Is it simple enough to explain here in the comments section?


      • Its tied to bonds serving the national debt- they come up for renewal ie-2/5/10 year bonds sold by the treasury. The treasury puts more bonds on the market than are coming due (easing) or reduces the amount available for renewal (quantitive tightening) thus reducing the dollars (liquidity) in the market and making bonds more expensive (think OPEC reducing barrel supply) and thus reducing liquidity in the market place. DAMN I DID GOOD! EVEN I UNDERSTAND IT!

        Liked by 2 people

      • Joshua2415 says:

        I’m not an economist or an accountant but I’ll give it a try…
        During the Obama Depression era, The FED was pumping tens of billions of cash into the economy every month “buying” US Treasury Bonds with freshly “minted” digital dollars trying to boost economic activity. For the most part, the FED bought those bonds from the Too Big to Fail Banks. The banks then took the profit they made form those sales to the FED and either bought back their own stock, invested it, spent it, or loaned it out to customers and other businesses. That’s how new cash from the FED gets into the real economy.
        The bonds that the FED bought are basically loans to the US treasury. Since they own the bonds, they get the payments on those loans. Over time, the cash that they pumped
        into the economy comes back to them through repayment of the loans / aka bonds (using your tax dollars buy the way). For years, the FED would take that returned cash and just buy more bonds, which kept their balance sheet the same. Now with the blossoming Trump era economy, they are holding the cash and not buying more bonds. They are basically sucking excess capital from an economy that appears to no longer need it.
        (Apologies in advance to any financial professionals if I got this wrong.)

        Liked by 1 person

        • Thanks guys. So basically they stop buying bond and the taxpayers pay for the old ones. So where does the Fed get its money from and where does it go when they sell things off?


          • Ironclaw says:

            It’s all imaginary…


          • Joshua2415 says:

            To get the money, some clerk at Fed Central types in a new cash balance in their account. It’s no harder than that. They tell themselves that the money is there, and then magically it is!
            The second question is trickier. When the Fed pumps out new money into circulation, it sloshes around the economy in every way imaginable but ultimately it sticks to something. The Fed says that they believe most of it winds up as capital investments that lead long term economic growth, but that didn’t happen with Obama in office. What all that new cash ultimately stuck to was asset prices, principally stocks and real estate. That’s how the stock market “recovered” under Obama even though earnings growth was anemic. It’s why house prices “recovered” under Obama even though individual household earnings were flat or falling. The big question now is, can the Trump economy of strong corporate and household earnings growth continue to support the Fed induced asset price bubble. The jury is still out, but my personal bet would be no.

            Liked by 1 person

  5. AustinHoldout says:

    We needed some winnamins before the freaks pounce on every innuendo purposefully placed in the Mueller Report tomorrow.

    Liked by 1 person

  6. It seems that a President that has billions of dollars in international business experience with like-minded negotiators is great. This is a stark contrast to a previous White House led by a community precinct organizer and former 60’s ex-hippies turned politicians.

    Liked by 1 person

  7. TonyinLA says:

    This is why I voted for him.
    This is why they want him impeached.

    Liked by 3 people

  8. WRB says:

    ** tariffs on Chinese goods are essentially invisible to the consumer; likely being absorbed overseas**

    I remember a report that on the 25% duty, China is “eating” 21% and the US is paying 4%.

    Liked by 1 person

  9. Goods by Selected Countries and Areas: Monthly – Census Basis (exhibit 19)

    February figures:

    SURPLUSES, in billions of dollars, with South and Central America ($3.7), Hong Kong ($2.8), United Kingdom ($0.9), Brazil ($0.6), Singapore ($0.4), Canada ($0.4), and OPEC ($0.3).

    • The surplus with Hong Kong increased $1.0 billion to $2.8 billion in February. Exports increased $0.9 billion to $3.2 billion and imports decreased $0.1 billion to $0.3 billion.

    DEFICITS, in billions of dollars, with China ($30.1), European Union ($12.4), Mexico ($7.7), Japan ($6.7), Germany ($5.5), Italy ($2.8), South Korea ($2.4), India ($2.2), France ($2.2), Taiwan ($1.7), and Saudi Arabia ($0.3).

    • The deficit with China decreased $3.1 billion to $30.1 billion in February. Exports increased $1.6 billion to $9.2 billion and imports decreased $1.5 billion to $39.3 billion.

    • The deficit with Japan increased $1.3 billion to $6.7 billion in February. Exports decreased $1.1 billion to $5.7 billion and imports increased $0.2 billion to $12.4 billion.

    Liked by 1 person

  10. This should be time for the Winnamins baby, I haven’t seen it for a while. Please tell me that Sundance didn’t take it to New York!


  11. Julian says:

    Smaller scale of course. But.

    China-Australia Free Trade Agreement (ChAFTA)


  12. Tseg says:

    Crazy how MSM business news always says something like “despite the trade deficit shrinking, ‘experts’ believe this is due to a one-time special effect and is not sustainable. Our ‘experts’ also correctly forecast the market crash once Trump became President as well as the looming recession.”

    Liked by 2 people

  13. getfitnow says:

    Due to Obama’s “magic wand”, no doubt. /s

    Liked by 4 people

  14. Blind no longer says:

    OMG!!! Just listening to Hannity now, DiGenova is on and said Bill Barr is going to point the finger at the Obama administration during his news conference. Victoria said the Deep State better lawyer up…there are coming indictments!!! WOW…Bring IT!

    Liked by 3 people

  15. Arrest Soros says:

    A $1.8B reduction in the monthly deficit equates to an improvement in GDP of 0.1%
    The math:-
    $20,000B annual GDP = approx $1,677 monthly GDP (average only. Some months are higher, some are lower)
    A deficit reduction of $1.8B is 1,800/1,677 = 0.107% improvement in GDP


  16. mopar2016 says:

    Nadler and Schiff need to get a room.
    What a disgusting vile POS they both are.


  17. Fools Gold says:



  18. Ironclaw says:

    Isn’t it amazing that they always had to revise Obama’s numbers down yet they always have to revise Trump’s numbers up.


  19. Rynn69 says:

    Sundance, the multi-tasker. With all the Mueller report news (which is important), I am grateful that you keep us informed on the economic front. It can never be forgotten that the money is all the marbles. Thank you.


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