WASHINGTON: The US trade deficit narrowed in February, according to government data Thursday that was collected before US President Donald Trump launched his most recent salvo of punishing tariffs.
The overall trade gap of the world’s biggest economy shrank 6.1 percent to $122.7 billion, said the Commerce Department, slightly more than analysts expected.
In February, Trump unveiled – then halted – sharp tariffs on Canada and Mexico, while imposing added duties on China.
But in the weeks since then, he has rolled out painful levies on sectors like steel, aluminum and autos, with a global 10 percent tariff to hit US trading partners in early April.
All of this is set to weigh on US trade, as retailers and manufacturers scramble to adjust their supply chains and avoid cost increases.
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In February, the contraction of the US trade deficit came as exports rose and imports were flat, government data showed.
Exports rose by $8.0 billion from January to $278.5 billion in the month, while imports were almost flat at $401.1 billion.
Sectors driving exports included industrial supplies and materials like nonmonetary gold, alongside autos and parts.
Imports edged down slightly in the month overall, as purchases in areas like consumer goods and other areas failed to offset falls in sectors like industrial supplies.
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