Imports Drop Sharply in August, Narrowing US Trade Deficit

‘August’s smaller trade deficit will be a tailwind for third quarter real GDP,’ says Comerica Bank’s chief economist.

Shipping containers are stacked as cranes unload cargo ships at the Port of Los Angeles in San Pedro, Calif., on April 15, 2025. Patrick T. Fallon/AFP via Getty Images

President Donald Trump’s tariffs helped narrow the U.S. trade deficit in August as imports contracted more than 5 percent, new government data show.

The trade gap plummeted by nearly 24 percent to $59.6 billion, down from $78.2 billion, according to a report released by the Department of Commerce’s Bureau of Economic Analysis on Nov. 19