The US international trade balance is compiled by America’s Customs Agency and represents the value of all goods traded between the US and foreign nations. The balance is the calculated by subtracting total imports from total exports. A negative balance means that imports are more than exports, a positive trade balance means that exports are greater than imports.
The international trade balance fell 7.63% in magnitude from September to October from -$51.1 billion to -$47.2 billion. The balance is 16.74% smaller than the deficit in October 2018, when it was -$56.7 billion.
The US trade balance has continued to fall over the past couple of years despite the trade war due to companies diversifying their array of global suppliers. The majority of the US’s trade deficit comes from consumer products and cars, many of which are produced in countries in Asia. On the other hand, the U.S. had net positive exports of petroleum in the last two months, which helped reduce imports this month. This, along with nearly full employment, makes a case for the U.S.’s economic stability in the near future.