In June 22, the United States saw a decrease of billion in its trade deficit, bringing it to a six-month low of $79. billion. This figure compares to market predictions of $80. billion

Question 1

1
In June 2022, the United States saw a decrease of $5.3 billion in its trade deficit, bringing it to a six-month low of $79.6 billion. This figure compares to market predictions of $80.1 billion. The sales of nonmonetary gold, natural gas, foods, feeds, and drinks, as well as travel and transport services, were the primary contributors to the 1.7% increase in total exports that culminated in an all-time high of $260.8 billion. Imports, however, fell by 0.3% to a total of $340.4 billion, with passenger automobiles being the primary factor in this decline. The goods deficit became wider with China (-36.9 billion dollars) and Mexico (11 billion dollars), while it shrank with the European Union (18 billion dollars), Canada (7.9 billion dollars), and Russia (-0.6 billion dollars).

Since 1976, the United States has consistently run a trade deficit due to its high imports of energy and consumer goods. "China, Mexico, Germany, Japan, Ireland, Vietnam, and Italy" were the nations with which the US had the greatest trade imbalance in 2018. " Hong Kong, the Netherlands, Australia, the United Arab Emirates, Belgium, Brazil, and Panama" had the greatest trade surpluses with the United States in 2018. China accounts for sixteen percent of all international commerce, followed by Canada (15 percent) and Mexico (15 percent).

2
The main reason for these changes are the economical instability in many economies and the sanctions that are being set to some countries. As a good example the US – China trade war, which significantly affected to the exchange of the goods between two super economies. Where both countries stopped or limited to buy and sell certain goods to each other. Also, most of the countries these days are trying to be more independent and produce more domestic products. For example, agricultural produces, increasing number of countries are developing modern and effective ways of agricultural products production, because of which the are decreasing import of products and start exporting them. At the same time, countries that are previously imported that agricultural products has fewer demand.