U.S. terms of trade with China declined 0.2% in August 2021, after decreasing 0.3% in July. In both months, higher import prices from China more than offset rising export prices to China. Despite the recent drops, U.S. terms of trade with China rose 8.0% over the past year.
U.S. terms of trade with Japan declined for the second consecutive month, falling 0.3% in August following a 0.4% drop in July.
U.S. terms of trade with the European Union also decreased in August, falling 0.2% , after declining 1.1% in July.
In contrast, the indexes for U.S. terms of trade with Canada and Mexico increased in August, rising 3.2% and 0.3%, respectively.