US trade deficit fell in May as exports hit 2-year high

WASHINGTON — The U.S. trade deficit narrowed in May, and the politically sensitive trade gap with China also slid.

The Commerce Department said Thursday that the U.S. deficit in the trade of goods and services fell 2.2 per cent in May to a seasonally adjusted $46.5 billion. U.S. exports rose modestly to $192 billion — the highest level since April 2015 — on rising shipments of cars and consumer goods, including cellphones. Imports fell slightly.

President Donald Trump has vowed to reduce America’s trade deficits — the difference between exports and imports — blaming them on bad trade deals and abusive practices by U.S. trading partners, particularly China. His administration also is preparing to renegotiate the North American Free Trade Agreement with Canada and Mexico to overhaul a trade pact he’s called a “disaster” for American workers.

The deficit in goods with China fell by 6.2 per cent to a seasonally adjusted $30.1 billion. The gap with Mexico rose by 5.6 per cent to $6.8 billion.