U.S. Trade Deficit Narrows for First Time in Five Months

Protecting American Businesses

During his State of the Union speech on Tuesday, President Trump reiterated that a trade deal with China is imperative in order to protect American workers and businesses.

“I have great respect for President Xi, and we are now working on a new trade deal with China,” he said Tuesday at the Capitol in Washington, referring to his Chinese counterpart Xi Jinping. “But it must include real, structural change to end unfair trade practices, reduce our chronic trade deficit, and protect American jobs.”

Related: Investors Should Consider Emerging Markets, Trade Deal or Not

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will shore up a delegation to China next week to pave the way for a meeting between Trump and Xi. President Trump blamed past U.S. administrations “for allowing this travesty to happen” between the U.S. and China, while saying that the trade gap is indeed narrowing.

“We are now making it clear to China that after years of targeting our industries, and stealing our intellectual property, the theft of American jobs and wealth has come to an end,” said Trump. “Therefore, we recently imposed tariffs on $250 billion dollars of Chinese goods — and now our Treasury is receiving billions and billions of dollars.”

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