US trade gap near 10-yr high; Data likely to ramp up protectionist rhetoric

The US trade deficit has risen to its highest level in almost a decade.

Data released from the commerce department shows that the trade gap jumped by 5 percent in January to USD 56.6 billion and was higher than the estimated number. The deficit with China widened particularly sharply coming in 16 percent higher year-on-year (YoY) to USD 36 billion.

The data is likely to add fuel to Donald Trump’s protectionist rhetoric. In an interview to CNBC, US Commerce Secretary Wilbur Ross said the government’s aim is not to be disruptive but to balance the deficit.