
U.S. Trade Deficit Expands to $50.1B in July
The Commerce Department reported that the U.S. trade deficit swelled to $50.1 billion in July, the highest level it has been since February. It was the second straight month the gap grew, and also represents an all-time record for imports.
In June, the deficit stood at $45.7 billion. The breakdown between exports and imports showed that exports ticked down 1% to $211.1 billion. Meanwhile, imports exhibited an increase of 0.9% to a record $261.2 billion, largely powered by purchases of trucks and computers.
Efforts to shrink the deficit by renegotiating trade agreements and imposing taxes on imports have not yet had an impact. The U.S.’s goods deficit with China rose 10% in July to a record $36.8 billion, while the spread with the European Union increased 50% to a record $17.6 billion, and the gap with Canada rose nearly 58% to $3.1 billion. Conversely, the deficit with Mexico plunged 25% to $5.5 billion in July.
The trade deficit has climbed 7% so far this year, compared to the January-July 2017 period.
For comments, questions or concerns, please contact Dennis Kaiser