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US Trade Deficit Hits New Record in January as Exports Fall

March 9, 2022
The trade deficit increased by 9.4% compared to December to a record $89.7 billion.

A jump in oil and auto imports in January combined with a sharp drop in exports caused the U.S. trade gap to widen again in January, according to official data released Tuesday.

The trade deficit in the world's largest economy increased by 9.4% compared to December to a record $89.7 billion, the Commerce Department reported.

Exports fell 1.7% to $224.4 billion while imports rose to $314.1 billion, the report said.

U.S. firms have been trying to replenish depleted inventories and bring in parts and materials that have proved hard to find due to the pandemic disruptions that have snarled global supply chains.

"Overall, trade flows are at historic highs," Rubeela Farooqi, of High Frequency Economics said in an analysis, but the "deficit is poised to remain elevated for now on ongoing strong demand for imports."

Exports of services like travel fell, while the deficit in goods trade also hit a record, according to the data.

Imports of autos, parts and engines jumped $1.6 billion, while purchases of crude oil and natural gas rose $1.5 billion, but key semiconductors, needed for everything from cars to cell phones, fell $600 million compared to December.

Copyright 2022, Agence France-Presse

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