- The U.S. trade deficit rose to a record $75.7 billion in June. Although exports rose by $1.2 billion during the month, imports jumped $6.0 billion.
- The June data largely confirm the preliminary real GDP data for Q2 that were released last week. Real net exports subtracted 0.4 percentage points from topline GDP growth.
- The trade deficit likely will remain elevated in coming months due to continued strength in U.S. domestic demand.
- Logistics and transportation bottlenecks continue to disrupt trade flows, with the number of ships at anchor off the West Coast starting to creep higher again. These delays could potentially add noise to the trade data over the next few months.
- Non-seasonally adjusted data show that American exports to China edged down to $12.1 billion in June from $12.4 billion in May. China would need to average about $21 Billion of purchases per month over the next six months in order to meet its targets under the Phase One trade deal that was negotiated at the beginning of last year.
June Trade Data Largely as Expected
The U.S. trade balance widened to a record deficit of $75.7 billion in June. Exports rose $1.2 billion, while imports jumped $6.0 billion. Today’s report came in largely as the Q2 GDP data last week suggested. With imports outpacing exports for the quarter, net exports subtracted 0.4 percentage points from Q2 headline real GDP growth. READ FULL REPORT >>