America’s trade deficit fell more than expected in August, dropping to $59.6 billion, as U.S. imports recorded a steep decline — a shift economists say reflects the impact of President Donald Trump’s aggressive tariff strategy.
According to newly released government data, U.S. imports fell 5.1% to $340.4 billion, driven by an $18.6 billion decline in goods coming into the country. Industrial supplies, raw materials, and consumer goods all saw significant drops.
Exports, meanwhile, inched up 0.1% to $280.8 billion, boosted mainly by stronger performance in the services sector.
Trump, since returning to office, has imposed a wave of new tariffs on foreign economies — including sweeping “reciprocal” tariffs designed to match or exceed those placed on U.S. products. The administration argues the measures are aimed at protecting American jobs and rebalancing long-standing trade inequalities.
Government data showed the U.S. deficit with Canada and China narrowed in August, a shift White House officials are expected to tout as evidence that tariffs are working.