Across the G20, merchandise trade was mixed in the second quarter as U.S. imports dropped sharply amid elevated uncertainty and erratic U.S. trade policy, according to new data from the Organization for Economic Cooperation and Development (OECD).
The Paris-based group reported that for the G20 overall, exports rose 2.6% while imports were flat in the second quarter.
“This was largely due to the sharp contraction in imports into the U.S. following the earlier surge in imports in [the first quarter],” the OECD said.
U.S. imports dropped 18.4% in the second quarter, “reflecting a decline in purchases of industrial supplies,” the group reported.
For Canada, exports fell 9.7% in the quarter, the OECD said, as “weaker oil prices weighed on exports … while imports were broadly unchanged.”
At the same time, most of Asia and Europe recorded solid growth in merchandise trade in the second quarter.
“China’s exports and imports rose by 2.5% and 4.7%, respectively, boosted by semiconductors and high-tech products,” the OECD said. “In the European Union, exports and imports grew by 4.7% and 6.3%, respectively …”
While merchandise trade was mixed, “services trade growth accelerated amid increased trade uncertainty,” the OECD said, as preliminary estimates indicate services exports and imports rose 4.7% and 2.9%, respectively.
For the U.S., services exports grew 0.8% while import growth remained flat in the quarter.
In Canada, exports of services were up 2.9% in the quarter, “primarily driven by higher revenues from other business services,” the OECD said, adding that imports rose 4.7%.
Services trade also “expanded strongly” in Europe, the group noted, adding that services exports “rose significantly” across East Asia.