The U.S. trade deficit unexpectedly widened to its highest level in 21 months in June as imports from China surged.
The U.S. Department of Commerce announced on Wednesday that the U.S. international trade deficit in goods and services expanded 19% to $49.9 billion in June. The trade deficit in May was revised downward to $41.98 billion, compared with preliminary data of $42.27 billion.
Economists previously surveyed by Dow Jones Newswires expected the trade deficit to expand to $42.7 billion in June.
The U.S. trade deficit with China expanded to $26.15 billion in June, the highest level since October 2008, an increase of 17% from the $22.28 billion deficit in May. In that month, imports to China increased by US$3.83 billion, while exports decreased by US$38 million.
The U.S. trade deficit with other major trading partners also hit a nearly two-year high in June. Among them, the U.S. trade deficit with Mexico expanded to US$6.21 billion; the trade deficit with the European Union expanded by 26% to US$7.76 billion; the trade deficit with Japan surged 45% to US$5.25 billion; the trade deficit with Canada increased from May to May. Expanded by $320 million to $2.58 billion.
The U.S. Department of Commerce said the real trade deficit, adjusted for inflation, widened to $54.14 billion in June from $45.99 billion in May. Economists often use this indicator to measure the impact of trade on gross domestic product (GDP).
U.S. exports fell 1.3% to $150.45 billion in June from $152.44 billion in May. The growth rate of imports accelerated in June, increasing by 3.1% to US$200.35 billion, compared with US$194.42 billion in May.
Imports of consumer goods increased by 7.8% in June, mainly driven by imports of medicines and household goods; imports of automobiles increased by 6.6% that month, and imports of capital goods increased by 1.2%.
U.S. crude oil imports in June increased to US$22.6 billion from US$21.54 billion in May, and import volume increased by nearly 32 million barrels to 311.9 million barrels. The average price of crude oil per barrel fell by US$4.49 to 72.44, a decrease of nearly 6%.
Imports of various energy products in June were US$28.02 billion, higher than US$27.6 billion in May.
In June, imports of consumer goods increased by US$3.1 billion, imports of automobiles and related parts increased by US$1.29 billion, imports of capital goods increased by US$462 million, and imports of food and feed increased by US$33 million.
Imports of industrial raw materials fell by US$186 million in June due to a decline in imports of fuel oil and other refined oil products.
In June, the export value of capital goods dropped by US$1.43 billion; the export value of industrial raw materials dropped by US$1.01 billion; the export value of consumer goods increased slightly by US$123 million; and the export value of automobiles increased by US$233 million.
At the same time, food, feed and beverage exports fell by $310 million.
