financetom
Economy
financetom
/
Economy
/
US goods trade deficit narrows sharply in June
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US goods trade deficit narrows sharply in June
Jul 29, 2025 5:57 AM

WASHINGTON (Reuters) -The U.S. trade deficit in goods contracted sharply in June amid a decline in imports, cementing economists' expectations that trade likely accounted for much of an anticipated rebound in economic growth in the second quarter.

The goods trade gap narrowed 10.8% to $86.0 billion last month, the Commerce Department's Census Bureau said on Tuesday. Economists polled by Reuters had forecast the goods trade deficit rising to $98.20 billion.

Imports of goods decreased $11.5 billion to $264.2 billion. Goods exports slipped $1.1 billion to $178.2 billion.

A flood of imports as businesses rushed to beat higher prices from tariffs on foreign merchandise helped to send gross domestic product declining at a 0.5% annualized rate in the January-March quarter. The trade deficit sliced off a record 4.61 percentage points from GDP in the January-March quarter. 

A sharp reversal is expected in the second quarter, though some of the boost to GDP was likely partially offset by businesses drawing down on some of the imports, which had landed in warehouses as inventory.

The government is scheduled to publish its advance estimate of second-quarter GDP on Wednesday. A Reuters survey of economists forecast economic growth rebounded at a 2.4% rate in the April-June quarter.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US manufacturing mired in weakness; AI spending boom helps some factories
US manufacturing mired in weakness; AI spending boom helps some factories
Sep 2, 2025
WASHINGTON (Reuters) -U.S. manufacturing contracted for a sixth straight month in August as factories continued to grapple with the impact of import tariffs, but an artificial intelligence spending boom is lending support to some segments of the industry.  The Institute for Supply Management (ISM) said on Tuesday its manufacturing PMI edged up to 48.7 last month from 48.0 in July....
US construction spending dips in July
US construction spending dips in July
Sep 2, 2025
WASHINGTON (Reuters) -U.S. construction spending fell in July as high mortgage rates continued to constrain the housing market.  The Commerce Department's Census Bureau said on Tuesday that construction spending slipped 0.1% after an unrevised 0.4% drop in June. The decline was in line with economists' expectations. Spending dropped 2.8% on a year-over-year basis in July. Spending on private construction projects...
Trump's Tariffs Gut The Very Thing They Were Meant To Save—US Manufacturing
Trump's Tariffs Gut The Very Thing They Were Meant To Save—US Manufacturing
Sep 2, 2025
President Donald Trump's aggressive push to protect domestic industry through tariffs is backfiring on the very sector it aims to defend, with the U.S. manufacturing economy shrinking for the sixth month in a row and businesses citing soaring costs, job cuts and planning chaos. The Institute for Supply Management's (ISM) Manufacturing Purchasing Managers Index (PMI) for August stood at 48.7%,...
Trump says his administration will ask Supreme Court for expedited ruling on tariffs
Trump says his administration will ask Supreme Court for expedited ruling on tariffs
Sep 2, 2025
WASHINGTON, Sept 2 (Reuters) - U.S. President Donald Trump on Tuesday said his administration will ask the Supreme Court for an expedited ruling on tariffs that a U.S. appeals court found illegal last week. The court ruling on Friday threatens to undercut the Republican president's use of the levies as a key economic policy tool. The court allowed the tariffs...
Copyright 2023-2026 - www.financetom.com All Rights Reserved