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US-China trade battle hurting export sales of both countries

August 2, 2019

WASHINGTON (AP) — The trade war between the United States and China has had a substantial impact on trade flows between the world’s two largest economies. But one thing has remained constant — the United States is still running its biggest trade deficit with China.

The Commerce Department reported Friday that America’s deficit in merchandise trade with China through the first six months of this year stood at $167 billion, down 10.1% from the same period last year.

That is still well above the deficit the United States is running with Mexico of $50.3 billion, which is the second largest imbalance. The deficit with Mexico did increase by a sharp 34.2% in the first six months of the year.

With both America and China in a tit-for-tat tariff war, trade flows of both countries have suffered. America’s goods exports to China have fallen 18.9% in the first half of this year to $52 billion while China’s sales to the United States have fallen by 12.4% to $219 billion.

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