US: Trade deficit is expected to widen to USD -48.5bn in January - Rabobank

Research Team at Rabobank suggests that the US will publish the latest trade balance figures at 14:30CET and the deficit is expected to widen to USD -48.5bn in January from USD -44.3bn in December, according to a Bloomberg survey.

Key Quotes

“That said, based on comments from US President Donald Trump and his advisors, the days of the US running a substantial trade gap with the rest of the world could be over. Speaking on Monday Peter Navarro - the director of the new White House National Trade Council – said that Trump’s administration’s goal is to promote “free, fair and reciprocal trade” to boost growth in the US economy.”

“In his view America’s trade with the world is “anything but reciprocal.” Speaking about specific countries, Navarro pointed out that the USD 65bn US trade deficit with Germany is “one of the most difficult” trade issues. “I think that it would be useful to have candid discussions with Germany about ways that we could possibly get that deficit reduced outside the boundaries and restrictions that they claim that they are under”, Navarro said. Recall that Navarro complained last month that Germany was using a weaker euro to gain a competitive advantage. Navarro also stated that “the Chinese have taken aggressive policies to make sure that the currency is undervalued”, although he refrained from accusing China for manipulating its currency as he waits for the Treasury report for a final verdict.”