United States Balance of Trade

The trade deficit in the US widened to $68.9 billion in February 2024, the highest in ten months, from an upwardly revised $67.6 billion gap in January and compared to forecasts of a $67.3 billion deficit. It reflected a decrease in the goods deficit of $0.3 billion to $91.4 billion and a decrease in the services surplus of $1.6 billion to $22.5 billion.Exports rose 2.3% to a record high of $263 billion, led by civilian aircraft, crude oil, soybeans, nonmonetary gold, travel and transport while shipments of passenger cars went down. Imports increased 2.2% to $331.9 billion, the highest since October 2022, with purchases rising for cell phones and other household goods, pharmaceutical preparations, travel, automotive vehicles, parts, and engines, transport and other foods. The goods deficit with China narrowed to $21.9 billion, the smallest in three months while the goods shortfall with Mexico widened to a record $15.3 billion.

The US recorded a $67.4 billion trade gap in January 2024, the biggest in nine months, compared to an upwardly revised $63.5 billion gap in December and forecasts of $63.5 billion. Exports edged up a meager 0.1% to $257.2 billion, with sales rising for nonmonetary gold, passenger cars, consumer and capital goods, travel and financial services, but falling for crude and fuel oil. Meanwhile, imports rose 1.1% to $324.6 billion, led by passenger cars, trucks, buses, and special purpose vehicles, computer accessories, computers, semicondutors, travel and financial services, while purchases went down for crude oil, cell phones and other household goods and transport. Deficits were recorded with China ($22.9 billion), European Union ($18.1 billion) and Mexico ($12.7 billion) while trade surpluses were recorded with Netherlands ($4.1 billion), Hong Kong ($2.2 billion) and Australia ($1.6 billion).

US trade deficit narrowed to $773.4 billion in 2023, the lowest in 3 years and down 19% from a record $951.2 billion in 2022. Imports fell 3.6% from a record $3.65 trillion in 2022 due to the lower cost of oil and the slowdown in demand for goods. Meanwhile, exports rose 1.2% or $35 billion to $258.2 billion, a record high with shipments of capital and consumer goods, and motor vehicles notching records. On the other hand, imports fell 3.6% or $142.7 billion from a record $3.65 trillion in 2022 due to the lower cost of oil and the slowdown in demand for goods. The goods trade deficit with China shrank to the smallest total since 2010 while trade gaps hit records with Mexico, Germany, Italy, the Netherlands, Mexico, South Korea, Taiwan, and India. In December alone, the deficit was little changed at $62.2 billion from a downwardly revised $61.9 billion in November, and matching forecast. Exports increased 1.5% to $258.2 billion while imports rose 1.3% to $320.4 billion.