US trade deficit hits record $75.7 billion in June

US trade deficit hits record $75.7 billion in June

The politically sensitive goods deficit with China rose to $27.8 billion in June, up 5.8% from the May level. So far this year, the goods deficit with China, the largest that the United States runs with any country, totals $158.5 billion, an increase of 19.2% compared to the same period in 2020. Donald Trump made China a principal target of his trade policies, accusing the country of violating trade laws to gain unfair advantages over American companies and workers. Trump imposed a variety of tariffs on China, triggering a tit-for-tat trade war in which the Chinese retaliated by imposing higher tariffs on U.S. goods such as soybeans.

The Commerce Department reported Thursday that the deficit rose 6.7% from a revised May deficit of $71 billion. The June deficit set a record, topping the old mark of $75 billion set in March. The trade deficit represents the gap between what the country exports to the rest of the world and what it purchases from other countries. In June, exports edged up a modest 0.5% to $207.7 billion while imports surged 2.1% to $283.4 billion. Through the first six months of this year, the U.S. trade deficit totals $428.6 billion, up 46.4% from the deficit during the same period in 2020, a time when Americans’ demand for imports was being dampened by the pandemic.

Analysts said the surge in the deficit may start to slow in coming months as the initial boom in consumer spending from the economy’s re-opening starts to level off and increased growth in foreign countries helps to boost U.S. export sales. “With the peak in consumer goods demand behind us, we expect consumer goods imports to weaken from here while survey measures of export orders support that exports growth is set to strengthen,” said Michael Pearce, senior U.S. economist at Capital Economics.

With the U.S. economy rebounding much more quickly than the rest of the world, U.S. demand for imported goods is out-stripping a slower increase in foreign countries’ appetite for U.S. exports. The widening trade deficit has been a drag on the economy this year. While the overall economy, as measured by the gross domestic product grew at a strong rate of 6.5% in the April-June quarter, the trade deficit subtracted 0.4 percentage-points from GDP growth. The deficit in just goods trade totaled $93.2 billion in June, a figure that was reduced by a $17.4 billion surplus the U.S. recorded in trade in services. The United States typically runs surpluses in services, items such as airline travel and hotels, but that figure has been depressed this year because of the pandemic’s impact on foreign travel.

The News Highlights

  • US trade deficit hits record $75.7 billion in June
  • Check the latest update on business news
Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
North Korea offers negotiations, likely trying to get relief from sanctions
North Korea offers negotiations, likely trying to get relief from sanctions
“Smiling a forced smile, reading the declaration of the termination of the war, and having photos taken could be essential for somebody, but I think that ...
Today marks the start of the final phase of laptop distribution to students
Today marks the start of the final phase of laptop distribution to students
In this phase of the initiative, coordinated under the Government Laptop Distribution Programme, some 20,000 laptops which were procured by the Government, ...
Weekend Offers for September 2021 on PS4 and PS5 Games
Weekend Offers for September 2021 on PS4 and PS5 Games
You can also find the blockchain: Under the Skin, a trial game set in New York in the 1950s, inhabited by anthropological animals. Available at 7.99 Rs. ...
Wednesday Wallpapers: 2021-09-22 Android Wallpapers
Wednesday Wallpapers: 2021-09-22 Android Wallpapers
For the newest walls as well as all the ones from previous weeks, check out this Drive link. Want to submit your own? Head to the bottom of this article. ...
Brian Laundrie left home without his wallet or cell phone, according to his attorney
Brian Laundrie left home without his wallet or cell phone, according to his attorney
TAMPA (WFLA) – The Laundrie family’s attorney Steven Bertolino announced on Friday that Brian Laundrie, Gabby Petito’s fiance left his family house on Sept. ...
The price of the Alienware m15 R6 with RTX 3060 GPU has been reduced by $314
The price of the Alienware m15 R6 with RTX 3060 GPU has been reduced by $314
As part of the sale, you can get the latest Alienware m16 R6 with RTX 3060 GPU for $1,179. Normally, it sells for $1,473 so that’s $314 in savings. This is ...
Crystal Dynamics, the studio behind Avengers: Infinity War, will collaborate on the Xbox remake of Perfect Dark
Crystal Dynamics, the studio behind Avengers: Infinity War, will collaborate on the Xbox remake of Perfect Dark
In a statement published on social media, Xbox’s new The Initiative studio – which itself is led by the former studio head of Crystal Dynamics – said the ...
Lee Health buys 23 acres along Pine Island Road for future expansion
Lee Health buys 23 acres along Pine Island Road for future expansion
Lee Health paid $3.7 million for the land. “Our Coconut Point location has transformed the delivery of health services for residents of South Lee County, ...
Ransomware attack before holiday leaves companies scrambling
Crypto Investment ITR Filing: Do you need to report cryptocurrency investments as foreign assets on your income tax return?
S. Vasudevan, Executive Partner, Lakshmikumaran & Sridharan Attorneys, an Indian law firm specializing in taxation matters, says, “There are no clear ...
New player in the retail TV World
New player in the retail TV World
Samsung LG, Vizio and another standbys hit company. A newborn study is connexion the well-known ones in the retail TV world. Amazon declared early in Sept ...
Show next
Compsmag - Latest News from tech, business and health
Logo