US Trade Deficit Hits 8-Month Low as Gap With China Shrinks

America's trade deficit in goods with China dropped 28 percent in February

An aerial view of container ships docked at the Port of Oakland in Oakland, California, on March 06, 2019. Justin Sullivan/Getty Images

WASHINGTON—The U.S. trade deficit declined to its lowest level since June 2018, mainly led by a dramatic drop in the trade shortfall with China, suggesting that President Donald Trump’s trade policy is working.

The United States’ deficit in the trade of goods and services was $49.4 billion in February, falling 3.4 percent from the previous month, according to Commerce Department data released April 17.