US EditionU.S. trade deficit drops 24% in August as Trump’s tariffs reduce imports
Imports fell 5.1% to $340.4 billion after tariffs took effect Aug. 7, narrowing the U.S. trade deficit to $59.6 billion, the smallest since October 2023, Commerce Department said.
- In August, the Commerce Department reported the United States trade deficit fell nearly 24% to $59.6 billion as imports declined 5.1% to $340.4 billion and exports edged up to $280.8 billion.
- Those tariffs, implemented Aug. 7, raised the U.S. effective tariff rate to more than 18%, sharply reducing imports, officials and data show.
- Nonmonetary gold and certain capital goods drove the import decline, led by drops in computer accessories and communications equipment, while trade with Switzerland and Canada shifted noticeably.
- The delayed Commerce Department report showed a bigger narrowing than markets expected, arriving after Wall Street forecast a $60.3 billion deficit, which economists say will boost third-quarter GDP.
- Despite August's swing, broader 2025 trends and court challenges complicate the outlook as the trade deficit through August $713.6 billion rises 25%, while the U.S. Supreme Court weighs legal challenges to tariffs.
139 Articles
139 Articles
With a month's delay, the figures of the US foreign trade balance for August have now been published. Trump's customs plan seems to work, doesn't it? An analysis.
With a month's delay, the figures of the US foreign trade balance for August have now been published. Trump's customs plan seems to work, doesn't it? An analysis.
With a month's delay, the figures of the US foreign trade balance for August have now been published. Trump's customs plan seems to work, doesn't it? An analysis.
Tariffs Cause August Trade Deficit To Fall 23.8% As “Liberation Day” Tariffs Kicked In
The August trade deficit fell a significant 23.8%, with exports flat and imports down 5% due in large part to the 90-day reprieve from the so-called “Liberation Day” tariffs expiring.Trump imposed tariffs on the world using the International Economic Emergency Powers Act (IEEPA) on April 2. Critics said it was too much, too soon, and Trump agreed to a 90-day pause to try and get concessions on trade from major countries first. Despite a handful …
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