Trade Deficit Slows as Exports Grow

The U.S. trade deficit in goods and services saw a 4.4 percent decrease in July to $70.1 billion. According to statistics from the Department of Commerce, imports edged up just 0.1 percent to $282.9 billion, likely due to global supply chain disruptions, while exports rose 1.3 percent to $212.8 billion amid recovery trends in foreign markets.

The year-to-date deficit was up 37.1 percent from July 2020 (when trade volumes were lower in the early stages of the COVID-19 pandemic) as exports increased 16.8 percent and imports jumped 21.3 percent.

The deficit in goods trade fell 5.9 percent in July to $87.7 billion. Imports of goods declined 1.2 percent to $236.3 billion, including decreases of $1.1 billion for toys, games, and sporting goods, $800 million for nonmonetary gold, and $700 million for lumber along with a $1.0 billion increase for passenger cars. Exports of goods gained 1.9 percent to a record $148.6 billion, including increases of $800 million for other industrial machinery, $600 million for gem diamonds, and $400 million for trucks, buses, and special-purpose vehicles.

The services surplus tumbled 11.9 percent to $17.7 billion, with imports up 5.4 percent to $46.6 billion and exports up 0.2 percent to $64.2 billion.

Country/region	Deficit	% Change	Surplus	% Change
China	$25.0 billion	-7.4
European Union	$18.1 billion	-7.7
Mexico	$8.5 billion	+18.1
Japan	$6.0 billion	+22.4
Germany	$5.6 billion	-11.1
Canada	$3.6 billion	-34.5
Italy	$3.5 billion	-5.4
Taiwan	$3.4 billion	+3.0
India	$2.8 billion	-20.0
South Korea	$2.1 billion	-25.0
France	$2.1 billion	+10.5
Saudi Arabia	$0.3 billion	0
South/Central America			$5.2 billion	+15.6
Hong Kong			$2.3 billion	+35.3
Brazil			$1.4 billion	-0.7
Singapore			$1.3 billion	+116.7
United Kingdom			$0.3 billion	Shift from <$0.1 billion deficit

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