US Trade Deficit Narrows to Its Narrowest Since 2023, Import Decline Main Cause
According to an App obtained by Zhongtong Finance, due to enterprises having reduced their purchases after a large-scale import surge at the beginning of the year, the US trade deficit narrowed to its lowest level since September 2023. The data released by the US Department of Commerce on Tuesday shows that the deficit in June goods and services trade decreased by 16% compared with the previous month, dropping to $602 billion. According to a survey conducted by Bloomberg among economists, the median prediction was a deficit of $610 billion.
The data shows that total imports declined by 3.7%, mainly due to the decrease in the value of imported goods to their lowest level since March 2024; export contraction rates were relatively small. This data has not been adjusted for inflation.
Among them, consumer goods imports have fallen to their lowest level since September 2020, and industrial supplies and automobiles have also experienced a decline in imports, although capital equipment imports have increased slightly.
This report shows that prior to the announcement by President Donald Trump on April 2 of large-scale tariffs, US enterprises had stockpiled goods in bulk. The current situation may be gradually easing off. Many tariffs have been temporarily suspended or reduced, giving companies more breathing room to purchase more foreign goods.
These data mark the end of the second quarter. According to preliminary data released by the US Department of Commerce last week, the US economy had a year-over-year growth rate of 3% in that quarter. Net exports contributed 5 percentage points to GDP, while in the first quarter, they had a drag on GDP of nearly 5 percentage points. Behind the surface-level data, economic momentum is actually weakening.
Last week, the White House released adjusted equivalent tariffs for countries that have not reached trade agreements with the US by August 1. It is expected that Trump will also introduce separate tariff measures for imports of pharmaceuticals, semiconductors, key minerals, and other crucial industrial products in the coming weeks, which could further disrupt the international trade landscape.