U.S. trade is experiencing a record rate this year, with a significant increase in aviation exports and strong automotive imports contributing to the growth. Data released by the U.S. Census Bureau shows that trade totaled $1.26 trillion through March, with exports down slightly but imports increasing. Exports have grown substantially over the past three years, while imports have also seen a significant increase during that time period.
The U.S. merchandise trade deficit rose to $248.24 billion, the second-largest in history for the first quarter, but the balance of trade has remained consistent at 40% exports and 60% imports for the past two years. The aviation industry saw a 16.23% increase in the category that includes aircraft and fuselage parts, benefiting other companies in the industry despite Boeing’s ongoing troubles. The aviation-exports total for the first three months of 2024 was the third-highest on record, trailing only the totals from previous years.
Oil exports and the aviation category were among the top five exports to gain more than $1 billion in value in the first quarter, while natural gas, soybean, pharmaceutical, and diamond exports saw declines. On the import side, passenger vehicles surpassed $50 billion for the first time and saw a significant increase compared to the same period last year. Other imports that gained more than $1 billion in value included computers, vaccines, medical equipment, motor vehicle parts, and jet engines.
Despite the overall increase in trade, there were also significant losses in certain imports, including cell phones, oil, natural gas, pharmaceuticals, and diamonds. The U.S. continues to maintain a balance of trade with a higher percentage of imports than exports, a trend that has been consistent over the past 20 years. Despite challenges within specific industries, the overall growth in trade is a positive indicator for the U.S. economy as it continues to engage in international trade activities.
