The US trade gap narrowed in June, government data showed Tuesday, as imports pulled back more than exports while businesses grappled with President Donald Trump’s tariffs on allies and competitors alike.
The overall trade deficit in the world’s biggest economy narrowed by 16% to $60.2 billion, down from a revised $71.7 billion figure in May, the Department of Commerce said.
The narrowing was more than analysts expected but largely reflected a drop in goods imports — including consumer goods as Trump’s wide-ranging tariffs added to businesses’ costs of bringing in foreign products.
In April, Trump imposed a 10%duty on most US trading partners and he has also slapped much steeper tariffs on steel, aluminum and autos.
The June deficit narrowed on the back of a fall in imports, by 3.7% to $337.5 billion, while exports also dropped by 0.5% to $277.3 billion.
The drop in imports came as those of consumer goods decreased $8.4 billion, while those of industrial supplies and materials fell by $2.7 billion. Imports of autos and parts also dropped by $1.3 billion.
The retreat in exports, meanwhile, came as goods exports declined by $1.3 billion, with decreases seen in industrial supplies as well.
The goods deficit with China dropped by $4.6 billion to $9.4 billion in June.
Washington and Beijing slapped escalating tariffs on each other’s products in April, reaching prohibitive triple-digit levels and snarling supply lines between the world’s two biggest economies.
But in May, the countries reached a temporary agreement to bring these duties to a lower level until August 12.
AFP
