Key facts
- The U.S. trade deficit in goods narrowed by 4.2% to $101.5 billion in June.
- Goods imports decreased by $8.2 billion to $306.2 billion.
- Goods exports fell by $3.8 billion to $204.7 billion.
- The improvement was insufficient to prevent trade from subtracting from second-quarter GDP growth.
The U.S. trade deficit in goods narrowed less than anticipated in June, contracting by 4.2% to $101.5 billion. This improvement was driven by a decline in imports, which fell by $8.2 billion to $306.2 billion, though they remain elevated due to strong spending on artificial intelligence infrastructure that relies heavily on imported components. Exports of goods also decreased, falling by $3.8 billion to $204.7 billion. Economists had predicted a goods deficit of $100.0 billion for the month. Despite the narrowing deficit, the overall trade balance is expected to have detracted from economic growth in the second quarter, continuing a trend from the previous quarter. The government is set to release its advance estimate for second-quarter gross domestic product growth, with economists forecasting a 2.1% annualized rate, matching the first quarter's pace.