Trade deficit widens to a 10-year high of US$621b

Washington

THE US trade deficit widened in 2018 to a 10-year high of US$621 billion, bucking President Donald Trump's pledges to reduce it, as tax cuts boosted domestic demand for imports while the strong dollar and retaliatory tariffs weighed on exports.

The annual deficit in goods and services increased by US$68.8 billion, or 12.5 per cent, Commerce Department data showed on Wednesday. The December gap jumped from the prior month to US$59.8 billion, also a 10-year high and wider than the median estimate of economists. The merchandise-trade deficit with China - the principal target of Mr Trump's trade war - hit a record US$419.2 billion in 2018.