US Trade Deficit Declines $8 Billion in February as World Awaits Trump Tariff Impact
International trade in goods and services dips to $122.7 billion from $130.7 billion in the previous month
Trade deficit of U.S. declined 8 billion in February, dropping to $122.7 billion from $130 billion, a Bureau of Economic Analysis report says. The report is significant as it is released a day after President Donald Trump announced a seismic shift in trade policy to reciprocal tariffs, taking world markets by storm.
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Imports outstripped exports by $122.6 billion in February. Exports amounted to $278.5 billion, which was 8 billion more than in January. Meanwhile, imports in February were $401.1 billion, about $100 million less than the previous month.
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The decrease in the goods and services deficit reflected a decrease in the goods trade deficit of $8.8 billion to $147 billion and a decrease in the services surplus of $0.8 billion to $24.3 billion.
The deficit year-to-date in goods and services increased $117.1 billion, or 86%, from the same period in 2024. Exports increased by $24 billion or 4.6%, while imports rose $141.2 billion or 21.4%. The average goods and services deficit increased $14.8 billion to $117.1 billion for the three months ending in February.
Average exports increased $1.6 billion to $271.8 billion in February and average imports rose $16.5 billion to $389 billion in the month.
Year-over-year, the average goods and services deficit increased $50.1 billion from the three months ending in February 2024. Average exports in goods and services increased $10.2 billion from February 2024. Average imports rose $60.3 billion from February 2024.
Goods Exports Rise
Exports of goods increased $8.3 billion to $181.9 billion in February. Industrial supplies and materials increased $3 billion. Nonmonetary gold exports increased $3.2 billion and fuel oil decreased $1 billion. Capital goods exports rose $2.7 billion while computer accessories increased $0.9 billion. Civilian aircraft increased $0.5 billion.
Automotive vehicles, parts, and engines increased $1.6 billion while passenger cars exports increased $1 billion. Overseas sale of trucks, buses, and special purpose vehicles increased $0.6 billion.
Exports of services decreased $0.4 billion to $96.5 billion in February, caused by a decrease in transport by $0.3 billion, travel by $0.3 billion, and government goods and services $0.2 billion. But the value of financial services increased $0.2 billion.
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The import of cell phones and other household goods rose $1.5 billion, while pharmaceutical preparations by $1.2 billion, capital goods by $1 billion, computers increased $0.7 billion, and medical equipment by $0.5 billion. Civilian aircraft imports, decreased $0.7 billion.
