The U.S. Goods Trade Deficit is Poised to Hit a Record Low

The United States (US) goods trade deficit is potentially poised to hit a record low. As an indicator, the US trade deficit from January to November 2018 reached US$800 billion, or approximately Rp 1,210.18 trillion, reaching 99% of the previous year's deficit.

US President Donald Trump's protectionist policies aimed at shielding the domestic economy, leading to a trade war with China, have had little impact. This is evident in the fact that the US trade deficit with all its partners (total) remains high due to strong domestic demand.

The worst US trade deficit occurred in 2006, reaching US$837 billion. Given that the deficit surpassed US$800 billion by November of last year, and the average monthly US trade deficit is around US$70 billion, it is likely that 2018 will record the worst deficit in years.