The US trade deficit shrank 5.6 per cent in June as imports fell for the first time since the start of the year, while exports also declined. Year-to-date, the deficit is down 33.8% from 2025 levels.
The US trade deficit narrowed to $73.3 billion in June from a revised $77.6 billion in May, as cooling import demand helped shrink the gap between the world’s largest economy’s exports and imports.
The goods and services trade deficit contracted 5.6 per cent from the previous month. The June figure was, however, slightly wider than analysts’ expectations of a $73 billion shortfall.
Imports fell 1.8 per cent month-on-month, marking their first decline since the beginning of the year, while exports dropped 0.9 per cent during the month.
The improvement in the headline trade balance reflected a smaller goods deficit alongside a modestly larger services surplus. Both services exports and services imports reached record highs in June.
Goods imports lose momentum
The decline in imports was driven in part by lower purchases of capital goods and consumer goods. Imports of pharmaceuticals and computers were among the categories that registered declines.
Goods exports also weakened during the month, largely reflecting a drop in industrial supplies. Lower crude oil shipments contributed to the decline in outbound goods trade.
Despite exports falling during the month, the sharper contraction in imports helped narrow the overall trade gap.
More from BusinessUS trade deficit down sharply in 2026
The year-to-date numbers paint a stronger picture for the US trade balance.
The US trade deficit is down 33.8 per cent compared with the corresponding period in 2025, as exports have grown substantially faster than imports.
Exports are up 11.7 per cent year-to-date from 2025 levels, while imports have increased just 0.4 per cent, helping compress the overall trade imbalance.
The latest data point to a cooling in US import demand after a stronger start to the year. However, movements in the trade balance will remain sensitive to domestic demand, global commodity prices and shifts in trade flows over the coming months.
