WASHINGTON: The US trade deficit narrowed sharply in June as imports retreated more than exports, reflecting the impact of President Donald Trump‘s tariffs on global trade.
Government data showed the deficit shrank by 16 percent to $60.2 billion, down from a revised $71.7 billion in May.
The decline was steeper than analysts expected, driven largely by a 3.7 percent drop in imports to $337.5 billion.
Exports also dipped by 0.5 percent to $277.3 billion. The pullback in imports was led by consumer goods, which fell by $8.4 billion, while industrial supplies and materials dropped by $2.7 billion. Auto and parts imports also declined by $1.3 billion.
Trump‘s tariffs, including a 10 percent duty on most US trading partners and higher levies on steel, aluminum, and autos, have raised costs for businesses importing foreign goods. The trade gap with China alone decreased by $4.6 billion to $9.4 billion in June.
In April, Washington and Beijing imposed escalating tariffs, reaching triple-digit levels and disrupting supply chains. However, a temporary agreement in May lowered these duties until August 12. – AFPpix
