The United States imports the most goods from the European Union, Mexico, Canada, and China.
The U.S. goods trade deficit widened in July as imports of oil and industrial supplies surged, driven by strong domestic demand and possible stockpiling by importers ahead of President Donald Trump’s new tariff rates for individual countries that took effect on Aug. 7.
According to data released by the U.S. Census Bureau on Aug. 29, the U.S. goods trade deficit jumped 22.1 percent in July from June to $103.6 billion, driven largely by a surge in imports.
Goods imports totaled $281.5 billion in July, up 7.1 percent from the previous month and 1.7 percent from a year earlier. Increase in imports was mainly driven by a 25.4 percent jump in industrial supplies, including petroleum, and a 4.8 percent increase in capital goods.
Meanwhile, exports stood at $177.9 billion in July, edging down just 0.1 percent from June.
US Deficit Driven by Product Categories
From January to June this year, the United States ran significant surpluses in aerospace products ($39.8 billion) and mineral fuels and oils ($32.9 billion). However, it had sizable trade deficits in machinery ($190 billion), electronics ($131.6 billion), vehicles ($125.8 billion), and pharmaceuticals ($100.7 billion), reflecting heavy reliance on other countries for these goods.
Top Suppliers to the US
The United States imports the most goods from the European Union, Mexico, Canada, and China.
From January to June, imports from the EU and Mexico increased by 18.3 percent and 6.3 percent, respectively, to $349.1 billion and $264.4 billion.
However, imports from Canada fell 3.3 percent to $198.2 billion, while imports from China dropped 15.6 percent to $167.5 billion.
Notably, the U.S. goods deficit with China was at its lowest since 2009, totaling $111.5 billion through June.
Imports and Exports in Goods With Key Partners
The U.S. goods deficit with the European Union stemmed from pharmaceutical products ($51.98 billion), organic chemicals ($42.95 billion), and machinery ($24.04 billion).
With Mexico, the U.S. goods deficit was primarily concentrated in vehicles ($49.81 billion) and machinery ($39.38 billion).
The United States had an energy deficit of $44.95 billion with Canada.
The goods deficit with China was notable in electronics ($34.87 billion) and machinery ($25.13 billion). Other contributing factors included deficits in toys and games ($8.76 billion) and furniture and bedding ($7.32 billion).
More than half of the U.S. goods deficit with Switzerland was attributed to precious metals and jewelry ($27.37 billion).
By Sylvia Xu
