The U.S. goods and services trade deficit rose 7.9% for the month of July, but the goods deficit alone hit a record for the year – $103.13 billion. The previous high was in May at $100.1 billion.
The full deficit, including services, is $505.25 billion year to date ending July. It was around $470 billion in the same period in 2023.
Deficits were recorded with the usual top three led by China and followed by the European Union and Mexico.
The U.S. deficit with China increased by roughly $8 billion to $30.12 billion in July. The deficit with the EU rose by around $4 billion to $22.7 billion.
Mexico, which was touted in the financial media earlier this year as having replaced China to become America’s No. 1 source of imports, saw a deficit reduction by around $1 billion in July to $13.22 billion.
Vietnam has slowed somewhat as a source of China goods made by its multinationals in Southeast Asia. The goods deficit came in again at around $10 billion in July, not much different than June.
All told, the U.S. has a $677.2 billion year-to-date goods deficit as of July. Assuming the U.S. produces monthly goods deficits of $90 billion for the remainder of the year, the country will end the year once again with a trillion dollar-plus deficit of $1.12 trillion.
The huge import surge in July suggests businesses and consumers, despite tighter credit, were still spending in the heat of the summer.
America’s Top Exports and Imports
As usual, the top traded items are fairly similar month over month. Missing from the top five this time were American made cars and trucks. This month showed a huge trade gap between cars made here and those imported, primarily from Mexico, Germany and Japan.
Pharmaceuticals is the export leader yet again, but is also a big source of imports. Most of the country’s generic drug supply is imported.
JULY EXPORT LEADERS:
Pharmaceuticals: $9.38 billion
Semiconductors: $7.02 billion
Industrial equipment: $5.63 billion
Aircraft engines: $5.21 billion
Car parts and accessories: $4.63 billion
JULY IMPORT LEADERS:
Pharmaceuticals: $20.46 billion
Passenger cars: $18.01 billion
Car parts and accessories: $12.21 billion
Computer accessories: $10.37 billion
Computers: $10.07 billion
Worth noting, within the top five exported goods, the U.S. has a trade deficit in semiconductors and industrial equipment.
The U.S. has a $151.77 billion trade deficit in advanced technology products. In this particular category, only the civilian and military aircraft trade is in surplus. Assuming an average $20 billion per month deficit for August-December, the U.S. will end the year with a record $251 billion deficit in advanced technology products, with the biggest deficit stemming from wireless communications equipment for things like 5G telecom systems and internet routers.
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
Trade Deficit Rises 7.9%; July Goods Deficit of $103 Billion Biggest on the Year
The U.S. goods and services trade deficit rose 7.9% for the month of July, but the goods deficit alone hit a record for the year – $103.13 billion. The previous high was in May at $100.1 billion.
The full deficit, including services, is $505.25 billion year to date ending July. It was around $470 billion in the same period in 2023.
Deficits were recorded with the usual top three led by China and followed by the European Union and Mexico.
The U.S. deficit with China increased by roughly $8 billion to $30.12 billion in July. The deficit with the EU rose by around $4 billion to $22.7 billion.
Mexico, which was touted in the financial media earlier this year as having replaced China to become America’s No. 1 source of imports, saw a deficit reduction by around $1 billion in July to $13.22 billion.
Vietnam has slowed somewhat as a source of China goods made by its multinationals in Southeast Asia. The goods deficit came in again at around $10 billion in July, not much different than June.
All told, the U.S. has a $677.2 billion year-to-date goods deficit as of July. Assuming the U.S. produces monthly goods deficits of $90 billion for the remainder of the year, the country will end the year once again with a trillion dollar-plus deficit of $1.12 trillion.
The huge import surge in July suggests businesses and consumers, despite tighter credit, were still spending in the heat of the summer.
America’s Top Exports and Imports
As usual, the top traded items are fairly similar month over month. Missing from the top five this time were American made cars and trucks. This month showed a huge trade gap between cars made here and those imported, primarily from Mexico, Germany and Japan.
Pharmaceuticals is the export leader yet again, but is also a big source of imports. Most of the country’s generic drug supply is imported.
JULY EXPORT LEADERS:
Pharmaceuticals: $9.38 billion
Semiconductors: $7.02 billion
Industrial equipment: $5.63 billion
Aircraft engines: $5.21 billion
Car parts and accessories: $4.63 billion
JULY IMPORT LEADERS:
Pharmaceuticals: $20.46 billion
Passenger cars: $18.01 billion
Car parts and accessories: $12.21 billion
Computer accessories: $10.37 billion
Computers: $10.07 billion
Worth noting, within the top five exported goods, the U.S. has a trade deficit in semiconductors and industrial equipment.
The U.S. has a $151.77 billion trade deficit in advanced technology products. In this particular category, only the civilian and military aircraft trade is in surplus. Assuming an average $20 billion per month deficit for August-December, the U.S. will end the year with a record $251 billion deficit in advanced technology products, with the biggest deficit stemming from wireless communications equipment for things like 5G telecom systems and internet routers.
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
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