US Trade in Q-1 2023

The US merchandise trade balance improved by 20.3% in the first three months of the year, as compared to January-March 2022. Exports rose 6.6% to $514.9 billion while imports fell 4.4%, to $783.7 billion. The difference was -$268.8 billion on $1,298.7 billion in two-way trade (down 0.3%).

Exports to the European Union rose 18.2% to $95 billion while those to NAFTA (Canada and Mexico) increased just 4.5%, to $167.3 billion. Sales to Asia were 1.1% higher at $144.1 billion.

Imports from the European Union rose 13.5%, to $141.4 billion. Purchases from Canada and Mexico rose by 0.7% (to $104.3 billion) and 8.7% (to $115.5 billion), respectively. America bought 13.8% less, in value terms, from Asia as a year earlier, or $299.1 billion. Within that total, imports from China were down 37.8% to $99.7 billion. It is only the second time in the past decade when US imports from China were worth less that $100 billion; the previous low was in Q-1 2020.

Import prices were down 4.6% in Q-1, following a 1.1% drop in the final period of last year. Export prices were similarly down 4.8% and 0.8%, respectively.