U.S. Trade Deficit Narrowed to -$70.7 billion in July as Exports Hit all Time High

The trade deficit in the US narrowed by $10.2 billion to $70.7 billion in July 2022, a 9-month low as world trade declines. Forecasts were for $70.3 billion. Total exports were up 0.2% to a new all-time high of $259.3 billion as a rise in exports of services offset a decline in goods shipments. Imports fell 2.9% to $329.9 billion. The deficit with China fell $3.9 billion to $33.0 billion in July with exports rising to $12.8 billion and imports decreasing to $45.8 billion.

China Tiajin Port

Highlights

  • International trade deficit for July 2022 -70.70B vs -70.3B estimate
  • Goods trade balance (revised) for July -90.19B vs -89.06B preliminary. Last month -98.59B
  • Services $20.44 billion surplus
  • Exports -0.2% vs. Junes -1.7%. Total exports 259.29 billion vs. 258.76 billion in June.
  • Imports -2.9% vs. June -0.2%. Total imports 329.94 billion vs. 339.64 billion
  • Decline in imports of consumer goods and industrial supplies offset a rise in shipments of automotive vehicles and parts. 
  • China trade deficit $-34.4 billion vs. June deficit of $-36.95 billion
  • Chinese exports rising to $12.8 billion and imports decreasing to $45.8 billion.
  • Capital goods imports $72.78 billion vs. June $72.29 billion
  • Oil imports price $102.27 vs. June $104.81. The prices up 56.8% from July 2021
US Trade Deficit

Deficit Source by Country and Product

China remains the single largest source of the U.S. trade deficit, the next-largest single-country trade deficit posted by the U.S. is with Mexico,

Highlights

  • The deficit with the European Union decreased $5.7 billion to $11.9 billion in July. Exports increased $1.7 billion to $31.4 billion and imports decreased $4.0 billion to $43.3 billion.
  • The deficit with China decreased $3.9 billion to $33.0 billion in July. Exports increased $0.9 billion to $12.8 billion and imports decreased $3.0 billion to $45.8 billion.
  • The deficit with Mexico increased $2.0 billion to $11.7 billion in July. Exports decreased $0.2 billion to $27.6 billion and imports increased $1.8 billion to $39.3 billion.

Surpluses with, in billions of dollars,

South and Central America ($7.4), Netherlands ($3.6), Singapore ($2.6), Hong Kong ($2.3), Switzerland ($2.1), United Kingdom ($1.7), Brazil ($1.4), Australia ($1.3), and Belgium ($1.2).

Deficits with, in billions of dollars,

China ($33.0), European Union ($11.9), Mexico ($11.7), Vietnam ($10.0), Canada ($8.7), Japan ($5.5), Germany ($5.1), Taiwan ($4.6), Ireland ($4.2), India ($3.7), South Korea ($3.6), Malaysia ($2.9), Italy ($2.3), Saudi Arabia ($1.3), France ($0.8), and Israel ($0.6).

Exports of goods decreased $0.3 billion to $183.0 billion in July.

Exports of goods on a Census basis increased $0.6 billion.

  • Capital goods increased $2.1 billion.
    • Other industrial machinery increased $0.6 billion.
    • Computer accessories increased $0.4 billion.
    • Telecommunications equipment increased $0.3 billion.
  • Automotive vehicles, parts, and engines increased $0.9 billion.
    • Passenger cars increased $1.0 billion.
  • Foods, feeds, and beverages decreased $1.3 billion.
  • Industrial supplies and materials decreased $0.9 billion.
    • Natural gas decreased $1.3 billion.
    • Other petroleum products decreased $1.0 billion.
    • Nonmonetary gold increased $2.0 billion.

Imports of goods decreased $8.5 billion to $274.1 billion in July.

  Imports of goods on a Census basis decreased $8.3 billion.

  • Consumer goods decreased $7.4 billion.
    • Pharmaceutical preparations decreased $3.0 billion.
    • Toys, games, and sporting goods decreased $0.9 billion.
    • Gem diamonds decreased $0.9 billion.
  • Industrial supplies and materials decreased $1.8 billion.
    • Other petroleum products decreased $0.7 billion.
    • Bauxite and aluminum decreased $0.5 billion.
    • Crude oil increased $1.0 billion.
  • Automotive vehicles, parts, and engines increased $1.8 billion.
    • Other automotive parts and accessories increased $0.7 billion.
    • Passenger cars increased $0.6 billion.
    • Trucks, buses, and special purpose vehicles increased $0.5 billion.

Source: bea

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