US Trade Gap Shrinks to $60.2B as Companies Pull Back From Import Binge

After months of racing to beat the tariffs, America finally took a seat. In June, the US trade deficit shrank 16% to $60.2B — the lowest since September 2023 — as companies that had scrambled to stockpile imports ahead of Trump’s tariff threats hit the brakes and started burning through their overstuffed warehouses.

• Import values plunged 3.7% to the lowest level since Mar. 2024, driven by consumer goods imports falling to their weakest point since Sep. 2020, while exports declined by a smaller margin.
• Trade imbalances with China fell to the smallest gap since 2009 as US companies cut purchases, while deficits with Mexico and Canada eased from earlier peaks this year.

The inventory hangover: After cramming warehouses with goods ahead of looming tariffs on pharmaceuticals and semiconductors, businesses are now pulling back and returning to more normal ordering patterns. That reset helped trade swing from the biggest drag on record in Q1 to a 5-point boost to Q2 GDP — a reminder that sometimes growth isn’t driven by fresh demand, but by simply clearing out what’s already on the shelves.