US Trade Deficit Narrowed in August After Tariffs Set In

(Bloomberg) — The US trade deficit shrank in August as a slew of global tariff rates from President Donald Trump kicked in, official data showed Wednesday after a lengthy delay due to a government shutdown.

The goods and services trade gap narrowed almost 24% from the prior month to $59.6 billion, the Commerce Department said. The median estimate in a Bloomberg survey of economists was for a $60.4 billion deficit.

The trade report had been scheduled for release on Oct. 7 but was delayed by the longest federal government shutdown, which ended last week. The agency said an updated release date for the September trade data, initially slated for Nov. 4, has yet to be determined.

In August, the value of US imports decreased 5.1%, the most in four months, while exports edged up. The figures aren’t adjusted for inflation.

A month earlier, the trade deficit widened as companies raced to import goods and materials ahead of so-called reciprocal tariffs that were initially announced in April. Those duties were paused for several months as some countries raced to strike deals with the US, many of which eventually took effect in August.

The large monthly swings in trade this year have introduced similar volatility in the government’s measure of economic activity — gross domestic product. Prior to the August data, the Federal Reserve Bank of Atlanta’s GDPNow forecast saw net exports contributing 0.57 percentage point to third-quarter GDP.

Separately, the Census Bureau announced Wednesday that it will issue the September retail sales report on Nov. 25, and durable goods orders data for the same month on Nov. 26.

Gold Imports

The slump in imports was led by a sharp drop in inbound shipments of nonmonetary gold, the agency said. The pullback reflected a massive increase in tariffs on Switzerland, a large exporter of gold. The US deficit with Switzerland narrowed substantially in August. The two countries have since struck a deal to lower import duties.

US imports of capital goods including computer accessories and communications equipment also fell in August.

On an inflation-adjusted basis, the merchandise trade deficit narrowed to $83.7 billion in August, the smallest since the end of 2023.

The August report showed the merchandise-trade shortfall with China widened to the largest since April, while the deficit with Mexico narrowed slightly. The shortfall with Canada shrank.

© 2025 Bloomberg L.P.

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