The U.S. trade deficit narrowed in June, government data revealed Tuesday, as imports fell more than exports while businesses continued to adjust to President Donald Trump’s tariffs on allies and competitors. The overall trade gap decreased by 16% to $60.2 billion, down from a revised $71.7 billion in May, according to the Department of Commerce.
The narrowing of the deficit was greater than analysts’ expectations, but it was largely due to a drop in imports, particularly consumer goods, as Trump’s tariffs added to the costs of bringing in foreign products. In April, Trump imposed a 10% tariff on goods from most U.S. trading partners, and also levied much steeper tariffs on steel, aluminum, and autos.
Imports dropped by 3.7% in June, to $337.5 billion, while exports fell by 0.5%, reaching $277.3 billion. The decrease in imports was driven by an $8.4 billion drop in consumer goods imports, a $2.7 billion decline in industrial supplies and materials, and a $1.3 billion drop in autos and parts.
Exports also retreated, with goods exports declining by $1.3 billion, including reductions in industrial supplies.
The U.S. goods deficit with China narrowed by $4.6 billion to $9.4 billion in June. This shift follows escalating tariffs between Washington and Beijing, which began in April and led to triple-digit tariffs that disrupted supply chains. However, a temporary agreement between the U.S. and China in May brought tariffs to a lower level, effective until August 12.
