U.S. trade with the rest of the world increased in March as companies shipped more oil, natural gas and vehicles overseas and exported more products to China after it lifted COVID-19 restrictions.
Exports rose 2.1% in March from the prior month to a seasonally adjusted $256.2 billion while imports declined 0.3% to $320.4 billion, the Commerce Department said.
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The trade deficit in goods with China in March was the lowest since March 2020.
Agriculture Not a Reason for Narrower Trade Gap in March
While the overall U.S. trade deficit narrowed to $64.2 billion in March from $70.6 billion in February on rising exports against imports that declined, the U.S. ag sector exports saw a wider deficit.
Though ag exports improved to $15.87 billion in March, up nearly 4% from February, imports surged to $17.68 billion, a 16% increase from the prior month. That produced a deficit of $1.83 billion versus a surplus of $49.1 million in February, which then pushed fiscal year (FY) 2023 agricultural exports to $100.19 billion vs imports of $98.94 billion for a cumulative surplus of just $1.25 billion.
