Trade trouble

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A host of U.S. consumer companies have warned that costs related to tariffs on goods imported from China would weigh on their results. The United States increased tariffs on $200 billion worth of Chinese goods to 25% from 10% in May. President Donald Trump has also threatened an additional round of tariffs on $300 billion worth of goods that would cover nearly everything imported from China to the United States.

 Factbox: U.S. companies warn Trump's tariffs could hit results - Reuters

An early look at U.S. trade patterns in May points to wider-than-expected trade deficit. The advance trade deficit in goods widened 5.1% to $74.5 billion, according to the Commerce Department. Economists polled by MarketWatch has expected the deficit to narrow to $70.7 billion. The government’s advance report on wholesale inventories showed a 0.4% rise in May. And advanced retail inventories increased 0.5%. What happened: Both imports and exports rose in May, but imports rose at a faster pace. The gain in imports was led by autos and industrial supplies. Exports were led by food and consumer goods.

 U.S. trade deficit in goods widens 5.1% to $74.5 billion in May - MarketWatch

And a not so good prediction:

President Donald Trump will likely reach a deal with China this summer given his “deeply underwater polling in key 2020 states,” Pantheon Macroeconomics Chief Economist Ian Shepherdson writes in a new note. Trump has a net-zero or negative approval rating in eight crucial swing states that he won in 2016, including Iowa and Ohio, which are big exporters of soybeans. Swing states are among the hardest hit by the trade war because of its impact on agriculture.

 Why Trump will likely reach a China deal by the end of summer