The US trade deficit widened in March, reversing the dip in February, but amid a high-stakes trade war the gap with China narrowed, according to government data released Thursday.

Goods imports from China fell to their lowest level in almost three years, with a notable drop in purchases of mobile phones and other household goods, according the Commerce Department report.

The modest increase in the US trade gap came as President Donald Trump's efforts to conclude a year-long trade battle with China verged on collapse, with punitive duty rates on hundreds of billions of Chinese goods due to more than double in less than 24 hours.

American officials say Chinese negotiators have reneged on core promises made during months of talks but they are due to resume later Thursday.

Trump has made trade a defining issue of his presidency, believing trade imbalances destroy jobs and drain the world's largest economy, but the trade deficit has continued to rise since he took office.

The deficit in merchandise trade with China fell 6.2 percent to $28.3 billion, seasonally adjusted, the lowest level since April 2016.

In March, the total US trade gap -- the difference between what the United States sells abroad and what it buys -- rose 1.5 percent from February to $50 billion, a slightly smaller increase than economists had been expecting, as American firms exported fewer jet planes but imported more crude oil and food,

That increase nevertheless put the deficit in the first quarter 3.7 percent below the same three-month period of 2018.

Total US exports rose one percent to $212 billion, with higher sales of natural gas, fuel oil, coal used in forging metal and soy beans.

But sales of aircraft decreased by $700 million, probably reflecting the suspension of deliveries by US aviation giant Boeing following the grounding worldwide of the top-selling 737 MAX aircraft in March in the wake of fatal crashes in Ethiopia and Indonesia.

Exports of services, like product licensing, tourism, and transportation, were the highest on record at $70.3 billion.

Total imports meanwhile rose 1.1 percent to $262 billion, driven by faster purchases of crude oil and organic chemicals as well as seafood, wine, feeds, grains and other foods.

In non-seasonally adjusted numbers, the US goods deficit with Mexico hit a record $9.5 billion for the month.

Exports to the EU were the highest on record at $30.6 billion, while imports from Germany were likewise the highest on record at $11.4 billion.

Imports from Japan reached their highest level in seven years at $13.3 billion.

More than a year of US-China trade tensions
Paris (AFP) May 9, 2019 - The United States and China have been locked for more than a year in a tit-for-tat trade dispute after President Donald Trump announced hefty taxes on steel and aluminium imports.

With negotiations due to resume in Washington Thursday, here is a recap.

- Tax on steel, aluminium -

On March 8, 2018 Trump announces tariffs of 25 percent on steel imports and 10 percent on aluminium in a bid to slash the US trade deficit.

China, the world's biggest producer of the two products, supplies two percent of US steel imports and nearly 10 percent of its aluminium.

- No exemption for China -

On the eve of the application of the tariffs, Trump suspends them on March 22 for several countries but not China.

Beijing responds with a list of 128 US products, including pork and fruit, on which it says it will impose customs duties of 15-25 percent if negotiations with Washington fail.

On April 3 Washington issues a list of $50 billion in Chinese imports set to be targeted by US tariffs -- including as electronics, aircraft parts and medicine -- as a response to alleged theft of US intellectual property.

Beijing riposts with plans to hit imports of the same value, including soya, cars and aircraft.

- Signs of appeasement -

On May 19 the countries announce a draft deal under which Beijing agrees to reduce its trade surplus "significantly".

It says it will reduce from July customs duties on imports of cars, clothing, household goods, cosmetics and fish.

On June 6 Beijing offers to buy nearly $70 billion of extra US goods if Washington drops its threat of tariffs on $50 billion of Chinese goods.

- Trade war -

The United States nonetheless goes ahead and implements on July 6 duties of 25 percent on about $34 billion in Chinese machinery, electronics and high-tech equipment.

Beijing in turn imposes tariffs of equal size and scope, including on farm produce, cars and marine products.

It complains to the World Trade Organization (WTO) about the "largest trade war" in economic history.

On July 16 Washington goes to the WTO over the Chinese measures.

- Escalation -

On August 23 the United States imposes tariffs on another $16 billion of Chinese goods.

China applies 25 percent tariffs on $16 billion of US goods, including Harley-Davidson motorcycles, bourbon and orange juice.

On September 24 Washington slaps 10 percent taxes on $200 billion of Chinese imports. Beijing puts customs duties on $60 billion of US goods.

- Truce -

On December 1 Trump and China leader Xi Jinping agree a ceasefire to the trade war. Washington suspends for three months a tariff increase from 10 to 25 percent due to begin January 1 on $200 billion of Chinese goods.

China agrees to purchase a "very substantial" amount of US products.

Relations tense again with the arrest on December 1 in Canada, at the US's request, of a top executive at Chinese telecom giant Huawei, Meng Wanzhoum, accused of violating US sanctions on Iran.

But on December 14 China says it will suspend extra tariffs added to US-made cars and auto parts for three months starting on January 1.

On December 28 it allows imports of American rice.

In January and February 2019 Beijing and Washington hold several rounds of trade negotiations.

On February 25 Trump puts off a customs duties hike planned for March 1, citing "progress".

- US ups pressure -

On May 5, days before the new trade talks open, Trump announces that tariffs on $200 billion in Chinese merchandise will be more than doubled to 25 percent.

The US accuses China of backtracking on commitments in trade talks, which Beijing rejects, warning it will not capitulate to pressure ahead of negotiations starting Thursday.

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