Economics
Tariffs Start to Drag on U.S. Economy as Trade Deficit Widens
- Some analysts reduce economic-growth estimates for quarter
- Goods-trade gap expanded to $75.8 billion, near a record
This article is for subscribers only.
Fresh data on the U.S. economy show President Donald Trump’s escalating trade war is shaping up as a clear drag on growth this quarter.
The merchandise-trade deficit unexpectedly grew in August to $75.8 billion, the widest in six months and close to a record, as exports of food, industrial supplies and autos declined, Commerce Department data showed Thursday. A separate report from the department signaled corporate investment took a breather, with business-equipment orders at U.S. factories falling in August following a run of strong gains, while shipments of those items slowed.