US trade deficit drops in June on record rise in exports

Compared to June 2019, total US trade — exports plus imports — plunged 21.9 per cent in June to USD 367.2 billion. But two-way trade rebounded from May to June, rising 6.7 per cent on a surge in both exports and imports of cars and auto parts.

The US 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 7.5 per cent to USD 50.7 billion in June from USD 54.8 billion in May. Exports shot up an unprecedented 9.4 per cent to USD 158.3 billion. Imports rose 4.7 per cent to USD 208.9 billion.

Global commerce has been hammered by the coronavirus pandemic. Compared to June 2019, total US trade — exports plus imports — plunged 21.9 per cent in June to USD 367.2 billion. But two-way trade rebounded from May to June, rising 6.7 per cent 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.

The politically sensitive deficit in the trade of goods with China fell 4 per cent to USD 26.7 billion in June..