June US trade deficit falls on weak imports, Canada trade deficit increases on one-time imports bounce
June’s US trade deficit of $60.2bn is even lower than expected, down from $71.7bn in May and in slipping marginally below April’s $60.3bn has reached its lowest level since September 2023. Exports fell by 0.5%, a second straight decline, but imports fell by 3.7%, a third straight fall as strong gains in Q1 ahead of tariffs were more than fully reversed.
Goods showed a 0.7% fall in exports and a 4.5% fall in imports, compared to respective declines of 0.6% and 4.3% seen in the advance report.
The services balance has marginally improved with exports down by 0.2% and imports down by 0.3%, both second straight declines. Overall, exports are up 3.3% yr/yr while imports are down by 1.4%, the latter contrasting a peak rise of 26.4% in March.
On a yr/yr basis imports are particularly peak from China at -44.5% and some partial recovery here is likely in Q3. Imports from the EU are down 6.3% yr/yr but those from Mexico and Japan are up by 6.3% and 2.2% from year ago levels. Those from Canada are down 13.7% yr/yr.
Canada’s own goods trade deficit of C$5.86bn is up from $5.49bn in May but still below April’s C$7.64bn. Exports rose by 0.9% after a 2.0% increase in May but these gains are modest compared with April’s 11.3% decline.
Imports rose by 1.4%, the first rise in four months, the gain largely on a high value import of a module designed for an oil project off the coast of Newfoundland. Otherwise imports remain weak.
