Kiplinger’s Economic Outlooks are written by the staff of our weekly Kiplinger Letter and are unavailable elsewhere. Click here for a free issue of The Kiplinger Letter or to subscribe for the latest trends and forecasts from our highly experienced Kiplinger Letter team.
The trade deficit narrowed in June as both imports and exports weakened. The U.S. trade deficit in goods and services fell to a seasonally adjusted $60.2 billion, from an upwardly revised $71.7 billion in May. The total volume of trade fell, reflecting a $1.3 billion decline in exports and a much bigger $12.8 billion decline in imports. The goods deficit narrowed to $85.9 billion, while the services surplus was virtually unchanged at $25.7 billion. The trade deficit is a measure of the difference between what the United States buys from foreign nations and what it sells overseas. Year-to-date, exports have increased 5.2%, while imports have increased 12.1% from the same period a year ago. The White House’s trade policy sent monthly trade figures on a rocky course at the start of the year, but the deficit has remained relatively steady since April.
Total exports fell 0.5% in June from the previous month. Goods exports fell 0.7% as a large drop in foreign sales of industrial supplies offset gains in other major categories. Exports of consumer goods rose 4.6%, thanks to an increase in outbound shipments of pharmaceutical preparations. Exports of services slipped 0.15% due to a slight decrease in sales of travel and transportation services, which include travel spending by foreign visitors in the United States. Exports of intellectual property and financial services increased, as did those of other business services.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Imports fell again in June, declining 3.7% to the lowest level since September 2020. Imports of consumer goods also fell to their lowest level since September 2020. Imports of industrial supplies and motor vehicles were also down. Meanwhile, inbound shipments of capital equipment rose. Imports of services fell 0.4% on the back of weaker travel and transport imports.
The U.S. trade balance has markedly improved in the second quarter, compared with the first. The Trump administration reached several trade deals in early August, placing an average base tariff of 15% to 25% on most countries. The trade deficit should slowly but steadily shrink in coming months, as long as tariffs remain in place.
Source: Bureau of Economic Analysis
Related content
-
Kiplinger Special Report: Business Costs for 2026Economic Forecasts Fresh forecasts for 2026, to help you plan ahead and prepare a budget on a range of business costs, from Kiplinger's Letters team.
-
Trump-Era Regulations Will Broaden Access to CryptoThe Kiplinger Letter The president wants to make the U.S. the leader in digital assets.
-
How to Adopt AI and Keep Employees HappyThe Kiplinger Letter As business adoption of AI picks up, employee morale could take a hit. But there are ways to avoid an AI backlash.
-
The Rise of AI: A Kiplinger Special ReportThe Kiplinger Letter Our special report looks at the opportunities and challenges of generative AI and how its rapid move into the mainstream is impacting every aspect of our lives.
-
Big Changes Are Ahead for Higher EdThe Kiplinger Letter A major reform of higher ed is underway. Colleges are bracing for abrupt change, financial headwinds and uncertainty.
-
AI-Powered Smart Glasses Set to Make a Bigger SplashThe Kiplinger Letter Meta leads the way with its sleek, fashionable smart glasses, but Apple reportedly plans to join the fray by late 2026. Improved AI will lure more customers.
-
Breaking China's Stranglehold on Rare Earth ElementsThe Letter China is using its near-monopoly on critical minerals to win trade concessions. Can the U.S. find alternate supplies?
-
Things that Surprise Business Owners When It’s Time to SellThe Kiplinger Letter When it’s time to retire and enjoy the fruits of growing their business, owners are often surprised by how tough it is to give up their baby!
