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US Trade Deficit Drops to $60.2 Billion in June Amid Decreased Exports and Imports
ByAinvest
Tuesday, Aug 5, 2025 9:27 am ET1min read
The US trade deficit decreased to $60.2 billion in June, down from $71.7 billion in May. Exports were $277.3 billion, while imports were $337.5 billion. Year-over-year, exports increased 3.3%, while imports decreased 1.4%. The trade deficit with China decreased to $9.5 billion from $22.8 billion a year ago.
The U.S. trade deficit narrowed significantly in June, marking a notable decrease from the previous month. The overall trade gap declined by 16.0% to $60.2 billion, as reported by the Commerce Department's Bureau of Economic Analysis [1]. This decrease was primarily driven by a sharp drop in consumer goods imports, indicating the impact of President Donald Trump's tariffs on global commerce.Exports of goods and services totaled $277.3 billion in June, down from $278 billion in May, while total imports were $337.5 billion, down from $350.3 billion. Year-over-year, exports increased by 3.3%, while imports decreased by 1.4%. The trade deficit with China specifically narrowed to $9.5 billion from $22.8 billion a year ago [2].
The narrowing trade deficit contributed significantly to the rebound in U.S. gross domestic product (GDP) during the second quarter. The economy expanded at an annualized rate of 3.0% in the second quarter, reversing a contraction of 0.5% in the first quarter. However, the headline figure masked underlying indications of weakening activity [3].
Last week, President Trump issued notices of higher import taxes set to be imposed on goods from various trading partners. With tariff rates ranging from 10% to 41%, the average overall U.S. tariff rate has risen to 18.3%, the highest since 1934 [1].
Economists expect that the trade policy uncertainty could ease in the second half of the year, potentially leading to less volatile imports and exports. This could contribute to a more stable economic environment [3].
References:
[1] https://finance.yahoo.com/news/us-trade-deficit-narrows-60-124952910.html
[2] https://www.reuters.com/world/us/us-trade-deficit-narrows-602-bln-june-2025-08-05/
[3] https://www.newsmax.com/finance/streettalk/u-s-trade-deficit-tariffs/2025/07/29/id/1220504/
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