WASHINGTON — The U.S. trade deficit narrowed in June as imports fell more sharply than exports, according to Commerce Department data released last week, offering a modest reduction in the drag from net trade on economic growth.
The goods and services trade deficit fell 5.6% to $73.3 billion from a revised $77.6 billion in May, the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Aug. 4. The decline was driven by a 1.8% drop in imports to $388.0 billion, while exports slipped 0.9% to $314.7 billion.
The goods deficit narrowed by $3.9 billion to $102.1 billion in June, while the surplus in services increased by $500 million to $28.8 billion, the agencies said.
Within imports, goods purchases fell 2.5% to $309.0 billion. Capital-goods imports declined by $2.1 billion, including a $3.0 billion drop in computers. Despite the monthly decline, computer imports remained substantially higher than a year earlier, reflecting continued demand for equipment used in artificial-intelligence infrastructure. Imports of telecommunications equipment increased by $1.1 billion.
Goods exports fell 1.9% to $206.9 billion, led by a $3.3 billion decline in industrial supplies and materials. Crude oil exports dropped $5.7 billion, while services exports rose $1.1 billion to $107.8 billion, supported by financial and trade services. Services imports increased $600 million to $79.0 billion.
The June figures came as the U.S. economy expanded at a 1.5% annualized rate in the second quarter. Government estimates showed the trade deficit subtracted a full percentage point from second-quarter gross domestic product growth. Domestic demand, however, increased at its fastest pace since the first quarter of 2023, supported by consumer and business spending.
The trade gap remained sizable despite the Trump administration's use of tariffs aimed at reducing imports and reshaping U.S. trade flows. The United States continued to record goods deficits with numerous trading partners in June, including Canada, China, Germany, India, Japan and Mexico. The goods deficit with China widened to $15.3 billion from $14.5 billion in May.
The latest data cover June. The next monthly U.S. international trade report, covering July, is scheduled for release on Aug. 27, according to the Census Bureau's publication calendar.
