The U.S. trade deficit widened to a record high of $948.1 billion in 2022, equivalent to 3.7% of the GDP from $845 billion in 2021. Impacts came from rising inflation, high energy prices and robust demand pushed imports to the highest level ever. For December the deficit was $67.4 billion from a downwardly revised $61 billion in November and lower than the forecast of a $68.5 billion deficit. Exports fell 0.9% to $250.2 billion, led by non-monetary gold, crude oil and foods, feeds and beverages. Imports rose 1.3% to $317.6 billion, led by purchases of cell phones and passenger cars.
- The US International trade deficit for December widened to $67.4 billion (consensus -$68.5 billion) from an upwardly revised $61.0 billion (from -$61.5 billion) in November.
- Exports $2.2 billion less than November exports
- Imports $4.2 billion more than November imports
- Exports of industrial supplies and materials decreased $3.1 billion, led by a $1.6 billion decrease in nonmonetary gold.
- Exports of consumer goods decreased $1.0 billion, paced by a $0.4 billion decrease in jewelry.
- Imports of consumer goods increased $4.1 billion, led by a $3.5 billion increase in cell phones and other household goods.
- Imports of automotive vehicles, parts, and engines increased $2.9 billion, led by a $1.6 billion increase in passenger cars.
- Imports of industrial supplies and materials decreased $2.7 billion with imports of fuel oil and organic chemicals both down $0.8 billion.
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,
- The deficit with China increased $3.0 billion to $22.8 billion in December. Exports decreased $1.0 billion to $12.6 billion and imports increased $2.0 billion to $35.4 billion.
- The deficit with Japan increased $1.6 billion to $7.2 billion in December. Exports decreased $0.3 billion to $6.2 billion and imports increased $1.3 billion to $13.3 billion.
- The surplus with the Netherlands increased $2.0 billion to $4.4 billion in December. Exports increased $1.2 billion to $7.0 billion and imports decreased $0.9 billion to $2.6 billion.
Surpluses with, in billions of dollars,
South and Central America ($5.1), Netherlands ($4.4), United Kingdom ($1.9), Australia ($1.5), Hong Kong ($1.3), Belgium ($1.1), Brazil ($0.9), and Singapore ($0.2).
Deficits with, in billions of dollars,
China ($22.8), European Union ($18.6), Mexico ($12.0), Vietnam ($8.1), Germany ($8.0), Japan ($7.2), Ireland ($5.8), Canada ($4.5), Italy ($4.2), South Korea ($4.0), India ($3.3), Taiwan ($3.0), Switzerland ($2.6), Malaysia ($2.5), France ($1.2), Israel ($0.7), and Saudi Arabia ($0.7).
Exports of goods decreased $2.9 billion to $168.1 billion in December.
Exports of goods on a Census basis decreased $2.8 billion.
- Industrial supplies and materials decreased $3.1 billion.
- Nonmonetary gold decreased $1.6 billion.
- Crude oil decreased $0.8 billion.
- Other petroleum products decreased $0.6 billion.
- Consumer goods decreased $1.0 billion.
- Jewelry decreased $0.4 billion.
- Pharmaceutical preparations decreased $0.2 billion.
- Foods, feeds, and beverages increased $0.7 billion.
Net balance of payments adjustments decreased $0.1 billion.
Exports of services increased $0.7 billion to $82.0 billion in December.
- Travel increased $0.4 billion.
- Transport increased $0.1 billion.
- Other business services increased $0.1 billion.
Imports of goods increased $4.5 billion to $258.8 billion in December.
Imports of goods on a Census basis increased $4.8 billion.
- Consumer goods increased $4.1 billion.
- Cell phones and other household goods increased $3.5 billion.
- Automotive vehicles, parts, and engines increased $2.9 billion.
- Passenger cars increased $1.6 billion.
- Other automotive parts and accessories increased $0.7 billion.
- Industrial supplies and materials decreased $2.7 billion.
- Fuel oil decreased $0.8 billion.
- Organic chemicals decreased $0.8 billion.
Net balance of payments adjustments decreased $0.3 billion
Imports of services decreased $0.3 billion to $58.8 billion in December.
- Travel decreased $0.5 billion.
- Transport decreased $0.1 billion.
- Charges for the use of intellectual property increased $0.2 billion.
From The Traders Community News Desk