U.S. Automotive Trade Deficit Jumps 38 Percent To $74.5 Billion In The First Nine Months

The U.S. automotive trade deficit swelled by 38 percent in the first nine months, climbing to a new record of $74.5 billion, fueled by rising imports of autos and auto pans.

The value of vehicle imports soared by 25.5 percent, climbing to $83.8 billion, while imports of auto parts grew to $45.4 billion, or by 14.4 percent (see tables on pages 8 & 9). A decline in vehicle exports to Japan and Mexico, coupled with the higher imports from Canada, Japan and Mexico, helped push the nine-month vehicle trade deficit to $66.3 billion.

Passenger cars and light truck imports accounted for most of the Passenger cars and light truck imports accounted for most of the vehicle deficit as imports climbed to $77.9 billion. U.S. exports of these vehicles fell 2.4 percent to $14.4 billion.

Automotive imports from Canada surged to an all time high of $46.9 billion, boosting the deficit by 66 percent to $13.9 billion. Vehicle imports from Canada climbed to $34.3 billion, up from $26.3 billion in the Jan. - Sept. 1998 period. Imports of auto parts from Canada jumped by 19 percent, reaching $12.6 billion.

The deficit with Japan rose by almost 16 percent as imports of vehicles climbed to $21.4 billion, up from $18.4 billion in the first three quarters of the previous year. The deficit with Mexico surged by more than 42 percent with imports of vehicles and vehicle parts climbing sharply and exports of both of these product groups falling.

A 21 percent rise in the value of imports of vehicles from Germany pushed the U.S. deficit with that country to $10.2 billion, or by 21 percent. Sharply higher imports of auto parts and vehicles from Korea, resulted in a $2.1 billion deficit, up by more than 42 percent.

U.S. Has Automotive Trade Deficit With Top 15 Trading Partners

The United States recorded a trade deficit with its 15 largest automotive trade partners. In trade with those countries, the U.S. deficit increased in 13 of the 15 countries. The two exceptions: the United Kingdom and Italy. The deficit shrank by 5.7 percent with the former and by 2.7 percent with the latter.

Trade Balance Worsened With All World Regions

On a regional basis, the U.S. trade deficit widen or its trade surplus declined with each of the 11 world regions. The deficit with the Far East jumped by almost 19 percent, climbing to $32.8 billion. The U.S. deficit with its North American trade partners, Canada and Mexico, surged 52.4 percent, reaching $29.7 billion.

In automotive trade with South America, the surplus recorded in the first nine months of 1998 was erased by rapidly falling U.S. exports in the comparable period of 1999, resulting in a deficit of $345 million. Similarly, the U.S. trade surplus with Africa last year faded to a $64.7 million deficit.

Higher imports of both vehicles and vehicle parts from the European Union pushed the U.S. deficit with this region to $13.5 billion, or by 24 percent. (See tables on pages 8 and 9).

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