A trade deficit at its lowest since Covid, record exports: 2023 was a good year in international trade for the United States.
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To complete this picture, Mexico is now their first partner, ahead of China, a key subject in the race for the White House.
The negative balance between products and services imported by the United States, and those it exported internationally, was reduced by 18.7% in 2023 compared to 2022, to $773.4 billion, according to data released Wednesday by the Commerce Department.
The deficit thus fell to its lowest level since 2020, when international trade suffered a halt due to Covid-19.
In detail, the United States exported $3,053.5 billion in goods and services in 2023, a record level, and an increase of 1.2% compared to 2022.
Imports fell by 3.6%, to $3,826.9 billion.
President Joe Biden, who is seeking a second term in the White House, will undoubtedly welcome these figures.
Since his election, he has launched vast investments aimed at repatriating the production of electric car batteries, semiconductors and even solar panels to the United States.
However, he did not return to the increases in customs duties for many Chinese products that had been put in place by his predecessor Donald Trump.
And, while a new duel between the two men looms for the presidential election in November, international trade, particularly with China, is one of the key subjects.
Mexico ahead of China
Donald Trump, who launched a trade war against the Middle Kingdom during his first term, plans, if he is re-elected in November, to impose customs duties of 60% on products imported from China.
He also mentioned a universal customs duty of 10% for all imports.
The year 2023 is also the year that saw Mexico steal from China its position as the United States’ leading trading partner, which it had held for more than 20 years.
The Asian giant actually sold $427.2 billion in goods and services (down $109.1 billion compared to 2022), compared to $475.6 billion (up $20.8 billion) for Mexico.
Officials from the American and Chinese finance ministries met this week in Beijing for the third meeting of the economic working group set up in October by the two countries to try to strengthen ties that have been very strained by many issues.
Washington had indicated that it had “raised concerning issues, including China’s industrial policy practices and overcapacity, while Beijing notably “expressed concerns regarding additional tariffs imposed by the United States on China”.
For the month of December alone, however, the United States trade deficit increased by 0.5%, to $62.2 billion, when analysts expected $62 billion, according to the Briefing.com consensus.
“The outlook for future trade flows is likely muted as a slowdown in demand and growth is expected, both domestically and abroad,” commented Rubeela Farooqi, chief economist at High Frequency Economics .
