What is the United States' trade deficit?

The trade war between the United States (US) and China continues, with both countries imposing increased tariffs on each other's imports. The US government's imposition of higher tariffs on Chinese steel and aluminum was met with retaliatory tariffs on US pork and agricultural products. President Donald Trump considers China to have engaged in unfair trade practices, resulting in a massive US trade deficit with China.

According to Census.gov data, the US goods trade deficit with all its trading partners increased by 6.11% in July 2018 to US$73.14 billion, while the services trade surplus fell by 0.57% to US$23.06 billion. As a result, the US trade balance (goods and services) in July showed a deficit of US$50.81 billion. For the January-July 2018 period, the total US trade deficit (goods and services) reached US$337.88 billion.

The US trade deficit with China in July 2018 reached US$36.83 billion, higher than the previous month's US$33.48 billion. Cumulatively, from January to July 2018, the US goods trade deficit with China amounted to US$222.55 billion. Imports totaled US$296.84 billion, while exports were only US$74.28 billion.