U.S. Trade Deficit Drops 24% in August as Trump Tariffs Cut Imports

The U.S. trade deficit fell by nearly 24% in August as President Donald Trump’s sweeping global tariffs pushed imports lower, Paul Wiseman and Josh Boak reported for the Associated Press (AP).

The U.S. trade deficit is up so far in 2025, coming in at $713.6 billion through August, up 25% from $571.1 billion in January–August 2024.

In a report delayed for more than seven weeks by the federal government shutdown, the Commerce Department said that the gap between what the U.S. buys from other countries and what it sells to them fell to $59.6 billion in August, from $78.2 billion in July.

Imports of goods and services dropped 5% to $340.4 billion in August from July, when U.S. companies were stocking up on foreign products before Trump finalized taxes on products from almost every country on earth.

Those levies went into effect on Aug. 7. U.S. exports edged up 0.1% in August to $280.8 billion.

Trump, charging that America’s persistent trade deficits mean other countries have taken advantage of the U.S., has overturned decades of U.S. policy favoring free trade by slapping double-digit tariffs on imports from most countries and targeting specific products — including steel, copper, and autos — with their own levies.

Still, the U.S. trade deficit is up so far in 2025, coming in at $713.6 billion through August, up 25% from $571.1 billion in January–August 2024.