US Goods Trade Balance Narrows More than Expected

The US trade deficit in goods narrowed by $10.4 billion from the previous month to $86 billion in June of 2025, firmly below market expectations of a softer decrease to $98.4 billion, according to an advance estimate. It approached the revised 20-month low from April, as importers likely reduced their foreign orders after front-loading their inventories on worries of aggressive tariffs by the US government, which triggered a record-high deficit of $162 billion in March. Imports slumped by 4.2% from the previous month to $264 billion, amid aggressive declines for consumer goods (-12.4% to $58 billion) and industrial supplies (-5.5% to $48 billion), although imports for capital goods were loosely stable (0.6% to $91 billion). In turn, exports inched lower by 0.6% to $178.2 billion, as higher sales of capital goods (4.7% to $60 billion) and foods, feeds, and beverages (4% to $14 billion) offset a drop in industrial supplies ($60 billion).