US goods trade gap with China drops to US$26.7b in JuneBusiness | 5 Aug 2020 11:43 pm
The U.S. trade deficit fell in June for the first time since February as exports posted a record increase, rising twice as fast as imports.
The Commerce Department said Wednesday that the gap between the value of what the United States buys and what it sells abroad fell by 7.5 percent to US$50.7 billion in June from US$54.8 billion in May. Exports shot up an unprecedented 9.4 percent to US$158.3 billion. Imports grew by 4.7 percent to US$208.9 billion.
The politically sensitive deficit in the trade of goods with China fell by 4 percent to US$26.7 billion in June.
In June, the United States ran a US$72.2 billion deficit with the rest of the world in the trade goods such as aircraft and appliance. But it ran a US$21.5 billion surplus in the trade of services such as banking and education.
Global commerce has been hammered by the coronavirus pandemic. Compared to June 2019, total U.S. trade — exports plus imorts — plunged by 21.9 percent in June to US$367.2 billion. But two-way trade rebounded from May to June, rising 6.7 percent on a surge in both exports and imports of cars and auto parts.
“The latest trade figures confirm that both exports and imports began rebounding in June, and we expect a continued recovery over the coming months as production catches up with the recovery in consumption,” said Michael Pearce, senior U.S. economist at Capital Economics.