| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | €-7.968B | €-6.25B | €-6.272B |
Highlights
France's April trade deficit was steady compared to a year ago at minus 7.968 billion Euros, while it expanded further from minus 6.272 billion in March. These are the first full-month results since the US imposed tariffs on the European Union.
Exports were 49.256 billion Euros, also little change from a year ago, but down 3.1 billion Euros from 52.367 billion in April. On the other side of the ledger, imports were 57.225 billion, in April, slightly lower than the 58.116 billion that came into the country a year ago. They were also relatively steady from last month's 58.639 billion.
Among sectors, the energy balance deteriorated a further 0.2 billion while manufactured goods improved by 0.1 billion. Given the nature of trade accounting, however, these changes amount to little more than rounding errors.
The US trade report released yesterday showed a deficit with France of $2.367 billion in April, narrowing from $3.747 billion in March. The US exported $4.181 billion worth of goods to France in April, slightly less than in March ($4.324 billion). Imports from France were $6.547 in April, down from $7.798 the previous month.
With the US showing no signs of backing down from its tariffs on the EU, trade will inevitably slow, potentially leading to dumping of products such as steel.
Exports were 49.256 billion Euros, also little change from a year ago, but down 3.1 billion Euros from 52.367 billion in April. On the other side of the ledger, imports were 57.225 billion, in April, slightly lower than the 58.116 billion that came into the country a year ago. They were also relatively steady from last month's 58.639 billion.
Among sectors, the energy balance deteriorated a further 0.2 billion while manufactured goods improved by 0.1 billion. Given the nature of trade accounting, however, these changes amount to little more than rounding errors.
The US trade report released yesterday showed a deficit with France of $2.367 billion in April, narrowing from $3.747 billion in March. The US exported $4.181 billion worth of goods to France in April, slightly less than in March ($4.324 billion). Imports from France were $6.547 in April, down from $7.798 the previous month.
With the US showing no signs of backing down from its tariffs on the EU, trade will inevitably slow, potentially leading to dumping of products such as steel.
Definition
The merchandise trade balance measures the difference between imports and exports of goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness.
Description
Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets. Given the size of the French economy, the euro can be sensitive to changes in the trade balance. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.
