- Prior month $-78.2 billion revised to $-78.9 billion
- US international trade deficit for December $-98.4 billion versus $-96.6 billion estimate. The 2nd largest trade deficit going back to 1992.
- Goods trade balance $-122.01 billion versus $-122.11 billion preliminary. Last month $-103.5 billion
- Exports $266.5 billion, $-7.1 billion or minus -2.6% versus November
- imports $364.9 billion, +$12.4 billion versus November
Details from the BEA
Exports of goods decreased $7.5 billion to $170.2 billion in December.
Exports of goods on a Census basis decreased $6.7 billion.
- Consumer goods decreased $1.8 billion.
- Pharmaceutical preparations decreased $1.4 billion.
- Industrial supplies and materials decreased $1.8 billion.
- Crude oil decreased $0.9 billion.
- Other petroleum products decreased $0.3 billion.
- Other precious metals decreased $0.3 billion.
- Fertilizers, pesticides, and insecticides decreased $0.3 billion.
- Capital goods decreased $1.4 billion.
- Computers decreased $0.9 billion.
- Civilian aircraft increased $1.4 billion.
- Automotive vehicles, parts, and engines decreased $0.9 billion.
- Trucks, buses, and special purpose vehicles decreased $0.4 billion.
- Other automotive parts and accessories decreased $0.3 billion.
Net balance of payments adjustments decreased $0.8 billion.
Exports of services increased $0.4 billion to $96.3 billion in December.
- Travel increased $0.3 billion.
- Financial services increased $0.1 billion.
Imports of goods increased $11.4 billion to $293.1 billion in December.
Imports of goods on a Census basis increased $11.3 billion.
- Industrial supplies and materials increased $10.8 billion.
- Finished metal shapes increased $9.2 billion.
- Nonmonetary gold increased $1.0 billion.
- Consumer goods increased $2.2 billion.
- Toys, games, and sporting goods increased $0.8 billion.
- Cell phones and other household goods increased $0.8 billion.
- Capital goods increased $1.3 billion.
- Computers increased $1.2 billion.
- Computer accessories increased $0.9 billion.
- Civilian aircraft decreased $1.1 billion.
- Automotive vehicles, parts, and engines decreased $2.2 billion.
- Passenger cars decreased $1.6 billion.
Net balance of payments adjustments increased $0.1 billion.
Imports of services increased $1.0 billion to $71.8 billion in December.
- Transport increased $0.5 billion.
- Travel increased $0.3 billion.
What were the surpluses/deficits by country:
Surpluses (in billions of dollars):
- Netherlands: $5.0
- South and Central America: $3.5
- United Kingdom: $2.3
- Hong Kong: $0.7
- Brazil: $0.4
- Saudi Arabia: $0.4
- Belgium: $0.3
- Australia: $0.2
Deficits (in billions of dollars):
- China: $25.3
- European Union: $20.4
- Mexico: $15.2
- Switzerland: $13.0
- Vietnam: $11.4
- Canada: $7.9
- Germany: $7.6
- Taiwan: $6.9
- Ireland: $6.2
- South Korea: $5.6
- Japan: $5.5
- India: $4.9
- Italy: $4.1
- Malaysia: $2.5
- France: $1.1
- Israel: $0.8
- Singapore: $0.4
Some highlights:
- The deficit with Switzerland increased $9.1 billion to $13.0 billion in December. Exports decreased $0.7 billion to $1.2 billion and imports increased $8.4 billion to $14.2 billion. That is a big change.
- The deficit with Canada increased $2.9 billion to $7.9 billion in December. Exports decreased $0.4 billion to $29.1 billion and imports increased $2.5 billion to $37.0 billion. That makes sense given all the barkng about Canada.
- The deficit with Ireland decreased $3.1 billion to $6.2 billion in December. Exports decreased $0.1 billion to $1.2 billion and imports decreased $3.2 billion to $7.5 billion
The data points to the import of goods ahead of tariffs. Most of the increase in imports was in industrial supplies and materials which increased by $10.8 billion. The larger trade deficit also plays into the hands of Trump raising tariffs. The higher the deficit the louder he can be about bringing manufacturing back to the US.