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US goods trade deficit contracts sharply in August

BY Reuters | ECONOMIC | 09/25/25 08:47 AM EDT

WASHINGTON, Sept 25 (Reuters) - The U.S. trade deficit in goods contracted sharply in August amid a plunge in imports, government data showed.

The goods trade gap narrowed 16.8% to $85.5 billion last month, the Commerce Department's Census Bureau said on Thursday. Economists polled by Reuters had forecast the goods trade deficit shrinking to $95.2 billion.

Imports of goods dropped $19.6 billion to $261.6 billion. Goods exports fell $2.3 billion to $176.1 billion.

President Donald Trump's tariffs have caused wild swings in goods imports this year, undercutting GDP in the first quarter before boosting growth in the April-June quarter.

Growth estimates for the third quarter are currently converging around a 2.5% annualized rate. The economy grew at a 3.8% pace in the April-June quarter, with a smaller trade deficit the key driver. (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama, Alexandra Hudson)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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