Changes in the U.S.-China trade deficit : Exports and imports before and after tariffs and the pandemic

Many of the trade policies that began in 2018 were driven by the high and persistent U.S. trade deficit with China. For example, the U.S. announced tariffs on solar panels and washing machines from China in January 2018, which is marked by the first vertical line in the FRED graph above. Several rounds of U.S. tariffs followed, and China enacted retaliatory tariffs.
We start our graph in January 2016 to include data before and during the period when these trade policies were initiated.*
The basic story told by the graph is that U.S. exports to China (in blue) seem to be relatively stable over time, but U.S. imports from China (in red) are more variable and also much larger. So, the bilateral trade deficit (in green), which is the excess of imports over exports, seems to follow the variable path of imports. Despite the trade war, the trade deficit peaked in October

Federal Reserve Source

Author: RealEstate