U.S. Goods Trade Deficit Narrows in August After July’s Surge
Summary
- Deficit: $85.5 bil. in August, down $17.3 bil. (-16.8%) from July’s $102.8 bil.
- Exports -1.3%, the third m/m fall in four months, led by a 6.8% drop in consumer goods exports.
- Imports -7.0%, down for the fourth month in five, led by an 18.9% plunge in imports of industrial supplies & materials.
The advance estimate of the U.S. international trade deficit in goods narrowed to a smaller-than-expected $85.54 billion in August after widening to $102.84 billion in July, data from the U.S. Census Bureau showed. The August reading, the second narrowing in the goods trade deficit in three months, was smaller than a $96.06 billion shortfall in August 2024. A deficit of $95.2 billion for August had been expected by the Action Economics Forecast Survey. The deficit reached a record $161.95 billion in March. In Q2'25, the goods trade deficit narrowed to $266.69 billion, the smallest since Q4'23, after ballooning to a record $465.03 billion in Q1'25; the monthly deficit averaged $88.90 billion in Q2'25, down from a record $155.01 billion in Q1'25.
Total goods exports, down for the third month in four, fell 1.3% m/m (-0.4% y/y) to a seven-month-low $176.07 billion in August after holding nearly flat m/m at $178.37 billion in July. April registered a record high of $190.08 billion. Exports were up 8.4% from a June 2023 low but down 3.1% from a July 2022 high. The m/m fall in exports in August reflected exports m/m drops of 6.8% (-5.4% y/y) in nonfood consumer goods excluding autos, 3.0% (-11.2% y/y) in automotive vehicles & parts, 2.1% (+5.1% y/y) in other goods, and 1.4% (-3.2% y/y) in industrial supplies & materials. To the upside, exports of capital goods excluding autos (1.1%; 5.6% y/y) and foods, feeds & beverages (0.3%; 3.8% y/y) rose m/m in August.
Total goods imports decreased 7.0% m/m (-4.1% y/y), the fourth monthly decline in five months, to $261.61 billion in August, the lowest level since January 2024, reversing a 7.0% gain to $281.21 billion in July. March registered a record high of $344.59 billion. Imports were up 4.0% from a June 2023 low but down 9.5% from a March 2022 high. The m/m decrease in imports in August reflected an 18.9% plunge (vs. a 25.9% July surge; -8.6% y/y) in industrial supplies & materials as well as imports m/m drops of 8.7% (-6.4% y/y) in foods, feeds & beverages, 6.4% (-17.8% y/y) in nonfood consumer goods excluding autos, and 4.4% (+10.5% y/y) in capital goods excluding autos. In contrast, imports of other goods (6.9%; 21.0% y/y) and automotive vehicles & parts (1.7%; -11.6% y/y) increased m/m in August.
The advance international trade data can be found in Haver's USECON database. The expectation figure is from the Action Economics Forecast Survey, which is in AS1REPNA.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
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