Trade Deficit Sees Small Decline as Exports Tumble

The U.S. trade deficit in goods and services edged down 0.4 percent in June, according to trade statistics released Aug. 2 by the Department of Commerce. The monthly deficit of $55.2 billion reflected a 2.1 decrease in exports to $206.3 billion and a 1.7 percent decrease in imports to $261.5 billion. For the year to date the deficit was up 7.9 percent from the same period in 2018, with imports up 1.5 percent but exports up less than 0.1 percent, as the Trump administration’s trade restrictions continue to impact global trade patterns.

The deficit in goods trade fell 1.1 percent to $75.1 billion in June. Imports of goods were down 2.2 percent to $212.3 billion, including decreases of $1.4 billion in crude oil, $1.4 billion in cell phones and other household goods, and $1.0 billion in other petroleum products. Exports of goods tumbled 2.8 percent to $137.1 billion, including decreases of $800 million in gem diamonds, $500 million in pharmaceutical preparations, and $400 million each in jewelry, computer accessories, and passenger cars.

The services surplus fell 2.9 percent to $20.0 billion. Imports were up 0.2 percent to $49.2 billion while exports were down 0.7 percent to $69.2 billion.

Country/region	Deficit	% Change	Surplus	% Change
China	$30.2 billion	+0.3
European Union	$15.9 billion	-5.9
Mexico	$9.2 billion	+1.1
Japan	$6.2 billion	+3.3
Germany	$5.2 billion	-10.3
Canada	$3.3 billion	-8.3
Italy	$2.6 billion	0
France	$1.9 billion	-9.5
Taiwan	$1.7 billion	+13.3
India	$1.6 billion	-15.8
South Korea	$1.4 billion	0
Saudi Arabia	$0.3 billion	Shift from <$0.1 billion surplus
Singapore	$0.1 billion	Shift from $0.6 billion surplus
South/Central America			$4.8 billion	+17.1
Hong Kong			$2.3 billion	-11.5
Brazil			$1.3 billion	+160
United Kingdom			$0.1 billion	0

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