US International Trade Deficit up 9.4% in January

The US international trade in goods and services deficit in January reached $89.7 billion up from $82 billion in December, a rise of 9.4%.

The trade deficit has almost doubled the last two years, rising steadily from $45 billion in January 2020.

The rise in the deficit was driven by decreases in exports of consumer goods, particularly pharmaceutical preparations, and exports of services, particularly travel services.

Meanwhile imports of automotive vehicles, parts and engines, industrial supplies and materials and food, feeds and beverages all increased substantially.  With oil prices rising there were notable increases in imports in crude oil which was up by $900 million and natural gas which was up by $600 million.

The largest deficits were recorded with China at $88 billion, the European Union at $39.4 billion and Mexico at $33.5 billion.