US trade deficit widens in October from a nearly 3-year low

WASHINGTON — The U.S. trade deficit climbed in October from its lowest monthly level in nearly three years. Imports of consumer goods such as medicine, cellphones and clothing increased, while exports of soybeans, gold and artwork tumbled_which fueled the monthly widening of the trade gap.

The Commerce Department said Tuesday that the deficit rose to $42.6 billion in October, up 17.8 per cent from September. The $36.2 billion trade deficit in September was the lowest since December 2013.

Reducing the trade deficit has become a primary focus of President-elect Donald Trump. Trump cites the trade imbalance as evidence that the United States has to signed misguided trade agreements that have hurt U.S. economic growth and cost jobs.

In the wake of an agreement last week to keep 800 jobs at the Carrier furnace factory in Indianapolis from going to Mexico, Trump has promised to lower corporate tax rates to preserve factory jobs inside the United States, while threatening harsh penalties for companies that produce goods overseas to save on labour costs. On Twitter, Trump warned that he will impose a 35 per cent tariff on the goods imported by companies that outsource production.