Trade Deficit Up Again as Imports Rise, Exports Fall
Trade statistics released Sept. 5 by the Department of Commerce show that the monthly U.S. trade deficit jumped 13.3% to $39.1 billion in July. Monthly exports fell $1.1 billion from a record high of $191.2 billion in June while imports reversed course and rose $3.5 billion to $228.6 billion. Compared to a year earlier, the July trade deficit was down $4.3 billion as exports rose 3.3% and imports gained 0.8%.
The monthly deficit in goods trade saw an 8.3% increase in July to $58.6 billion. Exports of goods were down $1.1 billion to $132.7 billion while imports rose $3.4 billion to $191.3 billion. The services surplus was down slightly to $19.4 billion as exports were virtually unchanged at $56.7 billion and imports were up $0.1 billion to $37.3 billion.
The bilateral trade deficit with China resumed its upward trend, gaining 13.2% to $30.1 billion. The U.S. also saw bigger deficits with the European Union (up 95.8% to $13.9 billion), Japan (up 23.6% to $6.8 billion), Germany (up 30.6% to $6.4 billion), Saudi Arabia (up 10% to $3.3 billion), Canada (up 55.6% to $2.8 billion), Venezuela (up 91.7% to $2.3 billion), Ireland (up 64.3% to $2.3 billion), Korea (up 37.5% to $2.2 billion) and India (up 110% to $2.1 billion). The only major trading partner with which the U.S. saw its trade deficit decline in July was Mexico (down 14.6% to $4.1 billion).
The Export-Import Bank of the U.S. notes that over the last 12 months, major export markets (those with at least $6 billion in annual imports of U.S. goods) with the largest annualized increases in U.S. goods purchases compared to 2009 were Panama (28.6%), Russia (22.1%), the United Arab Emirates (21.9%), Peru (21.3%), Chile (20.9%), Colombia (19.7%), Hong Kong (19.5%), Argentina (18.3%), Ecuador (18.0%) and South Africa (17.7%). Also during this period U.S. exports have been growing at an annualized rate of 10.2% when compared to 2009.