The U.S. trade deficit widened to the second-largest on record in November, with merchandise imports reaching a more than one-year high during the holiday shopping season.
According to Bloomberg, the gap in trade of goods and services reached $68.1 billion in November from $63.1 billion in October.
Total imports rose 2.9% to $252.3 billion, with inward-bound shipments of goods increasing to $214.1 billion, the highest value since May 2019.
In addition, the merchandise-trade deficit increased 6.2% to $86.4 billion, the biggest on record, while the US’s surplus in services to $18.2 billion, the lowest since August 2012.
The pandemic affected President Donald Trump’s 2017 pledge of “eliminating America’s chronic trade deficit” as it impacted demand and upended supply chains. Trump slapped hundreds of billions of dollars on China, US’s top trade partner, initiating a trade war.
While President-elect Joe Biden has criticized Trump’s strategy, he’s also indicated that he won’t immediately remove the tariffs.
