The trade balance represents the difference in value over a period of time between a country’s imports and exports of goods and services. A trade deficit subtracted from gross domestic product, the official scoreboard of the economy. For June, the United States again recorded a trade deficit. In fact, the last time the United States recorded a trade surplus was in 1975.
The international trade deficit reached $ 91.2 billion in June, up $ 3.0 billion from $ 88.2 billion in May. Exports of goods for June were $ 145.5 billion, 0.5 billion more than exports for May, while imports of goods for June were $ 236.7 billion, or 3.5 billion more than May imports.
The United States has had trade deficits for decades, and June was no exception. As the US economy embraces a faster recovery in the global economy, Americans are spending more on imports. But how big is the trade deficit?
Many economists disagree whether or not a trade deficit hurts an economy. Former President Trump has made deficit reduction a priority, emphasizing products made in the United States rather than imports. President Biden has yet to make any major statements or moves on the trade balance.
Interestingly, according to Statista data, the country with the lowest trade balance in 2019 was China, and the latest one was the United States, and they are each other’s biggest trading partner.