<html><head><meta http-equiv="Content-Type" content="text/html charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: rgb(34, 34, 34);" class="">For Immediate Release: Aug. 5, 2020<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: rgb(34, 34, 34);" class="">Contact: Matthew Groch, </span><a href="mailto:mgroch@citizen.org" style="color: rgb(149, 79, 114);" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">mgroch@citizen.org</span></a><span class="MsoHyperlink" style="color: rgb(5, 99, 193); text-decoration: underline;"><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">,</span></span><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: rgb(34, 34, 34);" class=""> (202) 454-5111<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 15pt; font-family: 'Times New Roman', serif;" class=""> </span></b></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: center;" class=""><b class=""><span style="font-size: 15pt; font-family: 'Times New Roman', serif;" class="">Trump Trade Deficit 6.5% Higher than Obama’s Last Year, Not Eliminated as Then-Candidate Trump Promised<o:p class=""></o:p></span></b></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: center;" class=""><b class=""><span style="font-size: 13pt; font-family: 'Times New Roman', serif;" class=""> </span></b></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: center;" class=""><b class=""><i class=""><span style="font-size: 13pt; font-family: 'Times New Roman', serif;" class="">Trump Trade Deficit Increases Even as Trade Flows Show COVID-19 Effect, Dropping 15% in First Six Months of 2020 Compared to Same Period in 2019<o:p class=""></o:p></span></i></b></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: rgb(38, 40, 42);" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: rgb(38, 40, 42);" class="">WASHINGTON, D.C. – The U.S. trade deficit in the first half of President Donald Trump’s fourth year in office remains 6.5% higher than in the same period in President Barack Obama’s last year, d</span><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">espite a 15% overall fall-off in trade flows related to the global pandemic, new trade data released by the U.S. Census Bureau shows.</span><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">“Worldwide COVID-19 has reduced trade flows, so the fact that Trump’s trade deficit is larger than the same period in the last year of the Obama administration shines a big fat spotlight on Trump’s failure to ‘eliminate’ the trade deficit, which he promised endlessly as a candidate in 2016,” said Lori Wallach, director of Public Citizen’s Global Trade Watch.<o:p class=""></o:p></span></div><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 11pt; font-family: Calibri, sans-serif;"><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Even as trade flows overall dropped 15%, the U.S. trade deficit in the first six months of 2020 was only down 9% relative to the same period in 2019. This is in part because imports from Mexico have begun to rise significantly. <o:p class=""></o:p></span></p><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 11pt; font-family: Calibri, sans-serif;"><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">The new U.S. Census Bureau trade data showed that:<o:p class=""></o:p></span></p><div style="margin: 0in 0in 0.0001pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify; text-indent: -0.25in;" class=""><span style="font-size: 12pt; font-family: Symbol;" class="">·<span style="font-size: 7pt; font-family: 'Times New Roman';" class=""> </span></span><b class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">The effects of the COVID-19 pandemic on commerce in general and trade in specific are evident in the six-month 2020 data</span></b><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">: Comparing the trade flows in the first 6 months of 2019 to the same period in 2020, U.S. trade has decreased 15%.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> <o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 31.5pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify; text-indent: -0.25in;" class=""><span style="font-size: 12pt; font-family: Wingdings;" class="">§<span style="font-size: 7pt; font-family: 'Times New Roman';" class=""> </span></span><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Total U.S. goods and services exports in the first half of 2020 were $1,066 billion relative to $1,266 billion in 2019. Imports in the first half of 2020 were $1,341 billion versus $1,563 billion in 2019. <o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 31.5pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt 13.5pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify; text-indent: -13.5pt;" class=""><span style="font-size: 12pt; font-family: Symbol;" class="">·<span style="font-size: 7pt; font-family: 'Times New Roman';" class=""> </span></span><b class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">The six-month 2020 trade deficit is 6.5% higher than the deficit for 2016, the year before Trump took office, even as the COVID-19 effect reduced the deficit 9% compared to the first six months of 2019.</span></b><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> Comparing the first half of Obama’s last year in office (January to June 2016), the overall trade deficit increased 6.5% rising from $257 billion to $274 billion in inflation-adjusted terms. <a name="_Hlk47515532" class="">(The unadjusted figures provided in the government data base show a rise from $238 billion to $274 billion.)<o:p class=""></o:p></a></span></div><div style="margin: 0in 0in 0.0001pt 0.25in; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify; text-indent: -13.5pt;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt 27pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify; text-indent: -13.5pt;" class=""><span style="font-size: 12pt; font-family: Wingdings;" class="">§<span style="font-size: 7pt; font-family: 'Times New Roman';" class=""> </span></span><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">T<span style="background-color: white;" class="">he overall U.S. goods and service trade </span><span style="color: rgb(34, 34, 34); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">deficit with the world dropped 9</span><span style="background-color: white;" class="">% in first half of 2020 relative to the same period in 2019 </span><span style="color: rgb(34, 34, 34); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">from $301 billion to $274 billion in </span><span style="background-color: white;" class="">inflation-adjusted terms</span><span style="color: rgb(34, 34, 34); background-color: white; background-position: initial initial; background-repeat: initial initial;" class=""> </span>(The unadjusted figures provided in the government data base show a drop from $297 billion to $274 billion.)<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 27pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt 27pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify; text-indent: -13.5pt;" class=""><span style="font-size: 12pt; font-family: Wingdings;" class="">§<span style="font-size: 7pt; font-family: 'Times New Roman';" class=""> </span></span><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: rgb(34, 34, 34); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">The U.S. trade deficit in goods decreased 7.5% in inflation-adjusted terms from $446 billion in the first six months of 2019 to $412 billion in the same period of 2020. However, the trade deficit in goods during these months is still 3% higher than the one experienced in the same period of 2016, rising from $399 billion to $412 billion (inflation-adjusted dollars).</span><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 0.5in; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify;"><b class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: rgb(34, 34, 34); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">The China deficit is down relative to Obama’s last year, but there is “trade diversion” effect of imports increasing from other countries.</span></b><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: rgb(34, 34, 34); background-color: white; background-position: initial initial; background-repeat: initial initial;" class=""> </span><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""><o:p class=""></o:p></span></li></ul><div style="margin: 0in 0in 0.0001pt 0.5in; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt 0.75in; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify; text-indent: -0.25in;" class=""><span style="font-size: 12pt; font-family: Wingdings;" class="">§<span style="font-size: 7pt; font-family: 'Times New Roman';" class=""> </span></span><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: rgb(34, 34, 34); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">The trade deficit with China decreased 22% in inflation-adjusted terms going from $169 billion in the first half of 2019 to $132 billion in the first half of 2020. It is also smaller compared to 2016, when in inflation-adjusted dollars, it was $173 billion for January to June.</span><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: red;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 0.75in; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: red;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt 0.75in; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify; text-indent: -0.25in;" class=""><span style="font-size: 12pt; font-family: Wingdings;" class="">§<span style="font-size: 7pt; font-family: 'Times New Roman';" class=""> </span></span><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">In inflation-adjusted dollars, the goods trade deficit with the rest of the world (excluding China) increased from $277 billion to $280 billion in the first half of 2020 relative to the same period in 2019.<span style="color: red;" class=""><o:p class=""></o:p></span></span></div><div style="margin: 0in 0in 0.0001pt 0.5in; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><ul type="disc" style="margin-bottom: 0in; margin-top: 0in;" class=""><li class="MsoNormal" style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify;"><b class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: rgb(34, 34, 34); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">The deficit with North American Free Trade Agreement (NAFTA) partners is 11% higher in the first half of 2020 relative to the same period in Obama’s last year in office but down relative to 2019 even as Mexican exports to the U.S. began to expand significantly in June.</span></b><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""><o:p class=""></o:p></span></li></ul><div style="margin: 0in 0in 0.0001pt 0.75in; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt 0.75in; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify; text-indent: -0.25in;" class=""><span style="font-size: 12pt; font-family: Wingdings;" class="">§<span style="font-size: 7pt; font-family: 'Times New Roman';" class=""> </span></span><span style="font-size: 12pt; font-family: 'Times New Roman', serif; color: rgb(34, 34, 34); background-color: white; background-position: initial initial; background-repeat: initial initial;" class="">The NAFTA deficit in the first six months of 2020 was $97 billion, 11% higher than the same period in 2016 when it was equivalent to $88 billion in inflation-adjusted dollars. (In nominal terms the goods trade deficit with NAFTA parties increased by 18%, or $15 billion.)</span><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 0.75in; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt 0.75in; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify; text-indent: -0.25in;" class=""><span style="font-size: 12pt; font-family: Wingdings;" class="">§<span style="font-size: 7pt; font-family: 'Times New Roman';" class=""> </span></span><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">The goods trade deficit with NAFTA parties decreased by $19 billion in inflation adjusted terms compared to the same period in 2019, largely because of measures taken to prevent the spread of COVID-19.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt 0.75in; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt 0.75in; font-size: 11pt; font-family: Calibri, sans-serif; text-align: justify; text-indent: -0.25in;" class=""><span style="font-size: 12pt; font-family: Wingdings;" class="">§<span style="font-size: 7pt; font-family: 'Times New Roman';" class=""> </span></span><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Even as the COVID-19 pandemic narrowed the trade deficit with NAFTA parties during the first half of 2020 compared to 2019, the reduction was not as large as expected given the jump of Mexican exports in June. According to the data released by Mexico’s statistics authority Mexico’s statistics authority (the National Institute of Statistics and Geography), Mexican exports, of which more than 80% are destined to U.S. markets, grew 75.5% in June relative to May. This resulted in Mexico posting a six-month January to June surplus of $2.6 billion even as Mexican exports decreased overall 12.8% compared to June 2019, Mexican imports dropped almost 10% more in the same period (22.2%).<o:p class=""></o:p></span></div><p class="MsoNormal" style="margin: 0in 0in 8pt; line-height: 15.399999618530273px; font-size: 11pt; font-family: Calibri, sans-serif;"><span style="font-size: 12pt; line-height: 16.799999237060547px; font-family: 'Times New Roman', serif;" class=""> </span></p><div class="">
<span class="Apple-style-span" style="border-collapse: separate; border-spacing: 0px;"><span class="Apple-style-span" style="border-collapse: separate; color: rgb(0, 0, 0); font-family: Helvetica; font-size: 12px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; "><div style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; " class=""><div class="">Arthur Stamoulis</div><div class="">Citizens Trade Campaign</div><div class="">(202) 494-8826</div><div class=""><br class=""></div></div></span><br class="Apple-interchange-newline"></span><br class="Apple-interchange-newline">
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