The US trade deficit shrank in June to its lowest level in nearly two years, as a pre-tariff rush to import goods subsided.
Imports fell more than analysts expected, in a reversal of a surge in February and March; those distortions pushed down GDP at the start of the year, though the economy is expected to grow more in the second quarter.
With US President Donald Trump’s tariffs reduced or on pause, importers had more breathing room to secure foreign goods.
But “trade will likely remain volatile,” a Bloomberg economist said.
Much depends on how US-China trade talks pan out: Trump’s 30% tariff on Beijing led the US’ trade deficit with China to fall to its narrowest point in 21 years.
AD