WASHINGTON: The US trade deficit narrowed more than anticipated in August as imports fell, government data showed Wednesday, in a report that was delayed by a record government shutdown ending only last week.
The 43-day stoppage had paused publications of federal economic data ranging from inflation numbers to retail sales, although reports are starting to trickle out again – with key September employment figures due Thursday.
In August, the overall US trade deficit narrowed more than analysts expected, reaching $59.6 billion on a notable drop in goods imports.
Imports declined 5.1 percent to $340.4 billion, with goods imports decreasing $18.6 billion. Among sectors that saw pullbacks were industrial supplies and materials, alongside consumer goods.
US trade deficit widens in May on weak exports
Exports edged up 0.1 percent to $280.8 billion due to an uptick in services, but the value of goods exports similarly fell.
Trade flows this year have been heavily swayed this year by President Donald Trump’s fast-changing tariff policies, with importers rushing to stock up on inventory ahead of planned hikes in duties.
Since returning to the presidency, Trump has imposed fresh duties on various economies, including a so-called “reciprocal” tariffs on virtually all US trading partners over practices that Washington deems unfair.
Trump also engaged in a tit-for-tat tariffs escalation with China, the world’s second biggest economy, with rates reaching prohibitive triple-digit levels in April – snarling trade.
Among countries, the US goods deficit with Canada shrank in August, as did that with China.
American Dollar Exchange Rate