Wednesday’s data to show how China conflict is affecting US trade gap

Reuters

A worker gestures as a crane lifts goods for export onto a cargo vessel at a port in Lianyungang, Jiangsu province, China February 13, 2019.

January’s international trade data could show the U.S. trade gap was again affected by trade friction and tariffs when it is reported Wednesday morning, economists said.

The U.S. trade deficit is expected to expand by $57.4 billion, slightly less than the 10-year high of $59.8 billion it reached in December. That month, U.S. exports declined by 1.9 percent, to $205.1 billion, while imports rose by 2.1 percent, to $264.9 billion.

The U.S. deficit with China rose by $3.2 billion in December, reaching a record $38.7 billion. Exports rose slightly, by $0.4 billion, to $7.7 billion, and imports were up $3.6 billion, to $46.4 billion.

Natixis economist Joseph LaVorgna said the effect of tariffs could create distortions in the data, just as they did with U.S. soybean exports last year. “I would pay more attention to the broader trends,” he said.

Trade data is released at 8:30 a.m. ET, and current account data is issued at 10 a.m.

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