US trade deficit narrowed in August after Trump’s trade tariffs kicked in
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The news: The US trade deficit shrank in August as trade tariffs introduced by US President Donald Trump came into effect, according to official data that had been delayed due to the US government shutdown.
The numbers: Figures released by the US Bureau of Economic Analysis showed that the goods and services deficit was USD59.6 billion ($91.86 billion) in August, down USD18.6 billion from USD78.2 billion in July, revised.
The reduction shows that the trade gap narrowed almost 24% from July.
The value of imports in August decreased 5.1% to USD 340.4 billion while exports edged up 0.1% to USD280.8 billion on the month.
The context: The narrowed trade gap came as a swing from the month prior, when US companies had raced to import goods and materials ahead of reciprocal tariffs that had first been announced in April. The tariffs were paused for several months as countries worked to strike trade deals with the US.
The BEA’s report was initially scheduled for release on 7 October, but was delayed because of the recently ended 43-day shutdown of the government.
The source: Bureau of Economic Analysis
