The US trade deficit widened sharply in April, under the combined effect of rising imports, particularly in the auto and commodity sectors, and a drop in exports, according to data released Wednesday by the Commerce Department. . The goods and services deficit with the rest of the world reached $74.6 billion, up 23% from the previous month, but still below the expectations of analysts, who had forecast a deficit of $75.3 billion, according to consensus posted by briefing. com. Over the year, the US trade deficit continues to fall sharply, by 23.9%, this time benefiting from both rising exports and falling imports.
In April, exports of goods fell by 3.6%, mainly due to the fall in the value of oil exports, as a result of the fall in the price of Brent observed in that month. To a lesser extent, the fall in products from the pharmaceutical industry as well as precious stones and jewelery also weighed heavily. On the contrary, imports of goods increased by 1.5%, due to the combined effect of the automotive industry, raw materials, mainly metals and chemical components, as well as consumer products, especially smartphones and household equipment.
Trade deficit with Europe concentrated in Germany, Ireland and Italy
Focusing on two-way trade in goods, the trade deficit with China, which remains the largest, widened slightly from the previous month, from $22.9bn to $24.2bn. Keep in mind, however, that the United States has a positive trade balance with Hong Kong.
The same trend with the European Union, with a trade deficit of 17.3 billion euros, which continues to be concentrated mainly in three countries: Germany, Ireland and Italy. Aside from America’s two largest trading partners, the deficit remains stark with Mexico and Vietnam, which is now among the top six countries of origin for US imports.
Source: BFM TV
