US trade deficit shrinks in June

Marco Green
August 6, 2020

Canada's imports and exports jumped sharply in June on the automobile sector's recovery, though a slower gain in exports led the trade deficit to unexpectedly balloon to C$3.19 billion ($2.41 billion).

The politically sensitive deficit in the trade of goods with China fell 4% to $26.7 billion in June.

The June figures show surpluses, in billions of dollars, with South and Central America ($1.8), United Kingdom ($1.3), Hong Kong ($1.0), OPEC ($0.5), and Brazil ($0.4).

USA exports rose by 9.4 percent to 158.3 billion US dollars in June while imports increased by 4.7 percent to 208.9 billion dollars, the department said. "Import prices were down 5.1%, while export prices rose 5.9%".

"However, compared with February 2020, the month before the pandemic's economic impact was felt in Canada, imports were down 14.3% and exports decreased 17.9%". "It's a very strong statement on the overall economy", Hall said.

"Hence, while the rebound in June trade volumes is encouraging, they have a long way to go before they return to pre-COVID levels". Economists warned that the outlook for the United States, Canada's largest trading partner, remains an unclear. At the same time, American exporters may stand to benefit from a recent decline in the value of the dollar, which makes USA goods more competitive in overseas markets.

Other reports by Click Lancashire

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