By Ethan Faverino |
The Joint Economic Committee released its analysis of the latest Monthly Trade Update, drawing on data from the Bureau of Economic Analysis, U.S. Census Bureau, Treasury Department, and Bureau of Labor Statistics. The U.S. recorded a total trade deficit of $57.35 billion in February 2026, an increase of $2.67 billion from January but 11% below the 12-month average.
The goods trade deficit stood at $84.60 billion in February, up $2.47 billion from the previous month and 8% below the 12-month average. Meanwhile, the services trade surplus narrowed slightly to $27.26 billion, down $204 million from January and 1% below the 12-month average.
Over the 12 months through February 2026, the cumulative U.S. trade deficit totaled $775.60 billion. This included a goods trade deficit of $1.11 trillion, partially offset by a services trade surplus of $329.60 billion.
Largest Goods Trade Deficits and Surpluses
During the 12 months, the United States recorded its largest goods trade deficit with Mexico ($194.61 billion, representing 17.76% of the total goods deficit), Vietnam ($187.93 billion, 17.15%), and China ($172.90 billion, 15.78%).
The largest goods trade surpluses were with the Netherlands ($65.56 billion), the United Kingdom ($42.57 billion), and Hong Kong ($36.16 billion).
Key Export and Import Categories
The top exported goods by value over the 12 months were civilian aircraft, engines, equipment, and parts; pharmaceutical preparations; and non-monetary gold. These categories together accounted for 17.14% of total U.S. goods exports.
On the import side, the leading categories were pharmaceutical preparations, computers, and passenger cars, which together made up 20.25% of the value of all imported goods.
February Trade Flows
Total exports in February reached $314.79 billion, up $12.56 billion from January and 8% above the 12-month average. Goods exports rose to $206.92 billion, while services exports increased to $107.87 billion.
Total imports climbed to $372.14 billion, up $15.23 billion from January and 5% above the 12-month average. Goods imports totaled $291.52 billion, and services imports reached $80.61 billion.
12-month Overview
Over the full 12-month period through February 2026:
- Total exports amounted to $3.49 trillion ($2.25 trillion in goods and $1.25 trillion in services)
- Total imports reached $4.27 trillion ($3.35 trillion in goods and $917.14 billion in services)
The U.S. exported the most to Mexico ($343.77 billion), Canada ($327.91 billion), and the United Kingdom ($105.71 billion), which together represented 34.89% of total exports. Imports were highest from Mexico ($538.38 billion), Canada ($367.20 billion), and China ($275.12 billion), accounting for 35.52% of total imports.
Major export port districts included New York City, NY ($268.93 billion), Houston-Galveston, TX ($242.43 billion), and Laredo, TX ($166.74 billion). On the other side, the leading ports were Los Angeles, CA ($369.30 billion), Chicago, IL ($352.76 billion), and New York City, NY ($319.81 billion).
Import Duties and Tariff Rates
In February 2026, the U.S. collected $21.24 billion in import duties, 13.25% below the 12-month average. Over the 12 months, total calculated duties reached $293.80 billion.
The average applied duty rate in February was 8.48%, 0.56 percentage points lower than the 12-month average. The top categories by duty revenue were passenger cars ($28.62 billion at 16.54%); other parts and accessories of vehicles ($19.12 billion at 14.21%); and electric apparatus ($15.11 billion at 15.09%).
The leading countries of origin by calculated duty revenue were China ($94.80 billion at an average rate of 35.99%), Mexico ($22.93 billion at 4.28%), and Vietnam ($20.84 billion at 10.06%).
Terms of Trade and Currency Movements
The U.S. dollar weakened against several major currencies over the period: down 5.8% against the Chinese yuan, 12% against the euro, 6.4% against the British pound, and 16.1% against the Mexican peso. However, it strengthened 3.6% against the Japanese yen.
Export prices rose 3.54% year-over-year (2.22% for agricultural exports and 3.76% for non-agricultural). Import prices increased 7.44% overall, with fuel imports falling 10.53% while non-fuel imports rose 8.64%.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
