The U.S. trade deficit shrank to an almost three-year low in August, reflecting a pullback in American demand for foreign merchandise and a pickup in goods shipments overseas. The deficit declined 9.9% to $58.3 billion, the lowest since September 2020, from a revised $64.7 billion for the prior month. The value of imports declined 0.7% to $314.3 billion, while exports increased 1.6% to $256.0 billion. But exports of foods, feeds and beverages were the lowest since August 2020.
U.S. ag trade deficit scores another record high... The U.S. exported $12.48 billion of ag goods in August, while ag imports totaled $16.10 billion. This resulted in a monthly trade deficit of $3.62 billion, inching up from the prior record of $3.58 in July. For fiscal year (FY) 2023, cumulative ag exports reached $166.02 billion, while imports totaled $180.03 billion, producing a trade deficit of $14.01 billion. USDA forecasts FY 2023 ag exports at $177.5 billion and imports of $196.5 billion, implying a record trade deficit of $19.0 billion and the third deficit in the last five fiscal years.
