US trade deficit with Japan surges 32.9% in Oct.

December 6, 2017

Washington- The United States' customs-cleared merchandise trade deficit with Japan in October soared 32.9 percent from the previous month to $6.4 billion, the first increase in two months, the Commerce Department said Tuesday.

The result came mainly because the deficit in trade of automobiles and related goods expanded 18.4 percent to $4.7 billion.

By country or region, the US trade deficit with Japan was the third biggest after the deficits with China and Mexico, compared with the fourth position in September.

US President Donald Trump, who has vowed to reduce his country's trade deficit, called on Japan and China to correct their trade imbalances with the United States during a tour of the two countries plus three other Asian nations last month.

The Trump administration is eager to open negotiations with Japan on concluding a free trade agreement between the two nations.

The United States' overall goods and services trade deficit in October increased 8.6 pct from the preceding month to $48.7 billion after seasonal adjustment on a balance of payments basis, the department said. The goods trade deficit grew 5.9 percent to $69.1 billion while the services trade surplus almost leveled off at $20.3 billion.

Exports were little changed at $195.9 billion. Imports grew 1.6 percent to a record $244.6 billion. Jiji Press