US Trade Deficit Widens On Record Crash In Exports

Tyler Durden's Photo
by Tyler Durden
Tuesday, May 05, 2020 - 09:10 AM

After reaching its smallest deficit since September 2016 in February, the US trade balance tumbled in March. The overall gap in goods and services trade widened to $44.4 billion from a revised $39.8 billion in February.

Source: Bloomberg

The surge in the deficit was driven by a plunge in US exports of goods and services. Exports dropped from the prior month by a record 9.6% to $187.7 billion, while imports fell 6.2% to $232.2 billion.

Source: Bloomberg

Declines in international travel and tourism made up a large portion of the decreases in exports and imports. Travel and transport exports dropped about $10.1 billion, while imports fell around $10.6 billion.

And the trade deficit with China has shrunk dramatically...

Source: Bloomberg

As Bloomberg points out, and is clear from the chart above, foreign trade was already diminishing heading into the pandemic, and now, faced with supply chain disruptions, a previously incomprehensible surge in unemployment and a drop off in demand, the world’s largest economy has pulled back more dramatically.