China gap is not 'serious' amid rise in US trade deficit

NEW YORK - Trade deficit of the United States is expected to expand further with a 17-percent rise in 2018 fiscal deficit amid additional import tariffs on major trading partners such as China, said US economists and trade experts.

The US deficit in international trade of goods and services in August and July hit new highs a few months after the imposition of tariffs on large quantities of imports, amid an ostensible claim to cut down trade deficit and wishful strategy to bring back manufacturing.

The fundamental cause of trade deficit is the imbalance between a country's savings and investments, said Sinem Sonmez, professor with the Department of Economics and Finance at Baruch College, the City University of New York.