Containers at the Port of Oakland in Oakland, California, on July 31, 2025. Photographer: David Paul Morris/Bloomberg.
The U.S. trade deficit narrowed in June to the tightest since September 2023, as companies scaled back on imports after a massive surge earlier in the year.
The goods and services trade gap shrank 16 percent from the prior month, to $60.2 billion, Commerce Department data showed Tuesday. The median estimate in a Bloomberg survey of economists called for a $61 billion deficit.
The value of imports fell 3.7 percent, dragged down by the lowest value of imported goods since March 2024. Imports of consumer goods fell to the lowest level since September 2020, and industrial supplies and motor vehicles were also down. Meanwhile, inbound shipments of capital equipment rose.
Exports contracted by a lesser amount. The figures aren’t adjusted for inflation.
The report illustrates what was likely the unwinding of U.S. companies’ rush in early spring to secure goods before President Donald Trump’s tariffs take effect. First announced on April 2, many of those “reciprocal” levies were subsequently paused or lowered, giving firms breathing room to secure more foreign-made goods before the actual import taxes hit.
The newly released June figures round out the second quarter, a period in which the U.S. economy grew at an annualized rate of 3 percent, according to the government’s initial estimate published last week. Net exports added 5 percentage points to gross domestic product (GDP) after subtracting the most on record in the first three months of the year. But under the surface, the economy is losing momentum. Last week, the White House released so-called adjusted reciprocal tariff rates on countries that didn’t reach trade deals with the U.S. by an August 1 deadline. Trump is also expected to unveil separate tariffs on imports of pharmaceuticals, semiconductors, critical minerals, and other key industrial products in the coming weeks. Those industry-specific import taxes have the potential to further up-end international trade.
Nevertheless, in the June report, the merchandise-trade shortfall with China narrowed to the lowest in data back to 2009 as imports declined, while the deficit with Mexico narrowed after reaching a record level in May. The goods trade deficit with Canada narrowed to the tightest since the end of 2020.
What Bloomberg economists say...“Data show that the massive increase in goods imports by U.S. companies ahead of President Donald Trump’s tariffs completely reversed in the second quarter. Looking ahead, trade will likely remain volatile and susceptible to tariff measures.”— Eliza Winger |
On an inflation-adjusted basis, the merchandise trade deficit narrowed to $84.6 billion in June after hitting a record earlier this year.
Trump is seeking “fairness” in bi-lateral commerce, with the aim of encouraging foreign investment in the United States, bolstering domestic production, and shoring up national industrial security. He also see duties as a means to raise revenue for the government.
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