The Commerce Department reported a decline in imports and exports, causing the U.S. trade deficit to narrow down.
The trade deficit fell 6.7%, with goods trade deficit dropping $2.3 billion during the month of January. Even though the lower trade deficit could help boost GDP, the decline in imports could offset this push.
The coronavirus epidemic has caused disruptions to the global economy and trade is no exception. In China, companies have slowed down production, disturbing businesses, and consumers. This led the US goods trade deficit with China to decrease, with exports falling by 18.7% and imports falling by 1.2%.
Economists fear that this epidemic will continue to cause a major disturbance for business flow and the country's economy.