Goods & Services Deficit Down 18% from 2022

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced that the goods and services deficit was $62.2 billion in December, up $0.3 billion from $61.9 billion in November, revised.

December exports were $258.2 billion, $3.9 billion more than November exports. December imports were $320.4 billion, $4.2 billion more than November imports.

The December increase in the goods and services deficit reflected an increase in the goods deficit of $0.7 billion to $89.1 billion and an increase in the services surplus of $0.4 billion to $26.9 billion.

For 2023, the goods and services deficit decreased $177.8 billion, or 18.7 percent, from 2022. Exports increased $35.0 billion or 1.2 percent. Imports decreased $142.7 billion or 3.6 percent.

Goods Deficit

The combined U.S. goods trade deficit with Canada and Mexico hit $220 billion in 2023, up from $85 billion in 2017 – the year Donald Trump took office and forced the two countries into a renegotiation of the decades-old North American Free Trade Agreement. 

The U.S. trade deficit with Mexico totaled a record $152 billion in 2023, driven largely by Autos and Parts.   Mexico exported $475.6 billion to the U.S., up 5% from 2022.   Mexico has surpassed China to become the biggest exporter of goods to the U.S. in 2023.

This is the first time in 20 years that Mexico became the leading source of goods imported by the U.S.

Meanwhile, its deficit with China narrowed 27% to $279.4 billion, falling to the lowest level since 2010, according to the U.S. Commerce Department's data.

The U.S. imported a total of $427.2 billion from China last year, a roughly 20% decrease from the year before.

Services

December services surplus ($26.9 billion) was the highest on record, and December exports of services ($87.0 billion) were the highest on record.

Exports
* December exports to Mexico ($23.8 billion) were the lowest since February 2022 ($23.6 billion).

U.S. exports of agricultural and related products reached a value of $191 billion in 2023, down 10% from 2022’s record as both commodity prices and shipment volumes declined.

Imports
* December imports from South Korea ($10.4 billion) were the highest on record.