The U.S. trade deficit in goods and services fell slightly to $73.3 billion in June as America imported fewer goods than it sold abroad.
Imports dropped 1.8 percent from the previous month, to $388 billion, though imports from Mexico, Vietnam and South Korea were at record levels.
U.S. exports also fell slightly from a busy month in May, according to data the Commerce Department released on Tuesday. Exports dropped 0.9 percent in the month, to $314.7 billion, as petroleum exports fell back from a historical high the prior month. Both exports and imports of services hit record levels in June.
The combination decreased the monthly trade deficit, the gap between what the United States imports and what it exports. The U.S. trade deficit in goods and services fell 5.6 percent from the prior month.
The Trump administration has tried to narrow the trade deficit, which it sees as a sign of America’s manufacturing weakness, with steep tariffs on foreign goods. On July 24, it imposed a new round of duties on more than 80 countries, an effort to rebuild the tariffs that the Supreme Court ruled unconstitutional earlier this year.
Since President Trump took office, imports of some goods have fallen, but demand has been strong for foreign chips needed to fill data centers, medicines and other goods. Imports, exports and the trade deficit have also fluctuated wildly as companies have tried to game the tariffs by stockpiling goods ahead of their effective date.
The war in Iran has also affected trade, as the closure of the Strait of Hormuz scrambled supply chains for oil fertilizer, product packaging and helium and boosted U.S. exports of petroleum.
The World Trade Organization said last week that global trade had proved resilient in the first quarter of the year, as a surge in the trade of electronic components needed for artificial intelligence offset some of the drag of the war. The disruptions of the war were likely to weigh on growth more in the second quarter, it said.
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