On Wednesday, the Commerce Department said that U.S. trade deficit rose 0.3% in July, reaching $43.7 billion, and trade deficit in June was revised down from previous $43.6 billion to $43.5 billion. The number in July was less than previous expectation of $44.6 billion.
Both imports and exports dropped in July. Imports of goods and services dropped 0.2% to $238.1 billion, imports of motor vehicles and parts decreased by $0.8 billion, and crude oil shipments declined by $1.0 billion.
Exports of goods and services were down 0.3% to $194.4 billion in July, and exports of goods and services fell 0.3% to $194.4 billion. However, exports of capital goods increased by $0.9 billion. Exports to the European Union dropped 9.8%, and exports of civilian aircraft increased $1.1 billion to $5.4 billion.
Imports of goods from China rose 3.1%, and exports to China increased 3.5%. The trade deficit between the United States and China rose 3% to $33.6 billion in July, reaching the highest level since August 2016.
In addition, petroleum exports were $10.2 billion, which was the highest level since November 2014. Petroleum exports narrowed to $3.09 billion, which is the smallest since May 2016.