Washington, USA – Data released today by the US Department of Commerce, delayed due to the partial shutdown of the federal government, showed that the new tariffs,
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The restrictions imposed by President Donald Trump had
a significant impact on trade activity in August.
US imports recorded a sharp decline of 5.1% to reach $340.4 billion.
This comes after new customs duties applied to exports from
about 90 countries came into effect on August 7.
In contrast, US exports remained stable.
With a slight increase of 0.1% to reach $280.8 billion.
Sharp contraction in the trade deficit
The sharp decline in imports led to a sharp contraction in the overall
trade deficit (goods and services) by about 24%.
It reached $59.6 billion compared to July.
This data provides a first glimpse into trade trends following
the implementation of the new tariff system.
Trade had seen an increase in July,
as companies rushed to ship their goods.
This is in anticipation of the re-imposition of customs duties in August.
In August, trade volumes fell sharply.
Especially in imports of industrial raw materials,
food products and machinery.
Historical rates and legal challenges
Customs tariffs were reinstated on August 7 at rates as high
as 15% on goods imported from countries
Such as Bolivia, Ecuador and Nigeria,
and 50% of Brazilian exports.
According to estimates from the Yale Budget Lab,
the effective rate of the US tariff exceeded 18%.
This is the highest level since 1934.
The tariff system faces a legal challenge.
The Supreme Court is examining whether Trump exceeded
his legal authority in imposing these tariffs.
A decision on this matter is expected soon.
However, US sources indicate that the president has
other legal grounds for imposing new restrictive measures.
Alternative measures to some of the disputed
tariffs are likely to be announced soon.
