Background

The monthly U.S. trade deficit in goods and services fell for the fourth straight month in July as exports edged up and imports tumbled.

According to statistics from the Department of Commerce, imports fell 2.9 percent from June to July, to $329.9 billion. Imports of goods were down 3.0 percent to $274.1 billion, with decreases of $3.0 billion for drugs, $900 million for toys, games, and sporting goods, and $900 million for gem diamonds along with a $1.8 billion increase for automotive vehicles, parts, and engines. Imports of services fell 2.1 percent to $55.9 billion. For the year-to-date, total imports were up 22.1 percent from July 2021.

Exports edged up 0.2 percent to $259.3 billion. Exports of goods were down 0.2 percent, with increases of $2 billion for non-monetary gold, $1 billion for passenger cars, and $600 million for industrial machinery along with decreases of $1.3 billion for natural gas, $1.3 billion for foods, feeds, and beverages, and $1 billion for other petroleum products. Services exports rose 1.1 percent to $76.3 billion. For the year-to-date, total exports were up 19.9 percent from a year earlier.

With exports up and imports down, the monthly U.S. trade deficit fell 12.6 percent in July to $70.6 billion. The deficit in goods trade declined 8.3 percent to $91.1 billion while the services trade surplus was up 11.5 percent to $20.4 billion. For the year-to-date, the overall trade deficit was up 29.0 percent from July 2021.

Country/region

Deficit

% Change

Surplus

% Change

China

$33.0 billion

-10.6

 

 

European Union

$11.9 billion

-32.4

 

 

Mexico

$11.7 billion

+20.6

 

 

Vietnam

$10.0 billion

-9.9

 

 

Canada

$8.7 billion

+19.2

 

 

Japan

$5.5 billion

+17.0

 

 

Germany

$5.1 billion

-5.6

 

 

Taiwan

$4.6 billion

+27.8

 

 

Ireland

$4.2 billion

-31.1

 

 

India

$3.7 billion

-28.8

 

 

South Korea

$3.6 billion

-2.7

 

 

Malaysia

$2.9 billion

-3.3

 

 

Italy

$2.3 billion

-34.3

 

 

Saudi Arabia

$1.3 billion

-31.6

 

 

France

$0.8 billion

-11.1

 

 

Israel

$0.6 billion

-25.0

 

 

South/Central America

 

 

$7.4 billion

-6.3

Netherlands

 

 

$3.6 billion

+20.0

Singapore

 

 

$2.6 billion

+44.4

Hong Kong

 

 

$2.3 billion

+35.3

Switzerland

 

 

$2.1 billion

+122.2

United Kingdom

 

 

$1.7 billion

Change from $0.4 billion deficit

Brazil

 

 

$1.4 billion

-17.6

Australia

 

 

$1.3 billion

-13.3

Belgium

 

 

$1.2 billion

+20.0

 

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