August Trade Deficit Narrows as Imports Post Biggest Drop in 4 Months

02:53 PM EST, 11/19/2025 (MT Newswires) -- The US trade deficit narrowed sharply in August as imports fell the most in four months, delayed government data showed Wednesday.

The goods and services deficit narrowed about 24% sequentially to $59.55 billion in August on an adjusted basis, the Census Bureau and the Bureau of Economic Analysis reported. The consensus was for a deficit of $60.4 billion in a survey compiled by Bloomberg.

Imports dropped 5.1% to $340.38 billion in August -- the largest decrease in four months -- while exports edged up 0.1% to $280.83 billion, government data showed.

The report, which was originally scheduled for release in early October, was delayed by the longest-ever US federal government shutdown, which ended last week.

President Donald Trump's sweeping tariffs took effect in August. Earlier this month, the US Supreme Court heard arguments on the legality of Trump's import duties.

The goods trade deficit with China ballooned to $15.37 billion in August from the previous month's $14.7 billion.

The goods trade gap narrowed to $2.96 billion from $5.37 billion with Canada. The deficit reduced with Mexico and the European Union too, the official data showed.

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