U.S. trade deficit narrows in June as imports fall faster than exports

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US trade deficit narrows in June

Highlights

U.S. trade deficit narrows in June as imports fall to $388.0 billion, down $7.3 billion, while exports drop $2.9 billion to $314.7 billion.
Goods deficit shrinks by $3.9 billion to $102.1 billion in June, with a $3.3 billion decline in industrial supplies and materials exports, led by crude oil.
Year to date, the goods and services deficit drops $189.3 billion, or 33.8 percent, from 2025, with exports up $198.3 billion and imports up $9.0 billion.

June trade figures and monthly shifts

As reported by the Bureau of Economic Analysis, citing the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, June exports total $314.7 billion, down $2.9 billion from May, while imports total $388.0 billion, down $7.3 billion from the prior month.

The monthly improvement in the overall trade balance reflects a $3.9 billion reduction in the goods deficit, which stands at $102.1 billion in June. The services surplus increases by $0.5 billion to $28.8 billion, partially offsetting the goods gap.

The three-month average picture is less favorable. For the three months ending in June, the average goods and services deficit increases by $5.6 billion to $68.5 billion, as average exports decrease $1.3 billion to $320.2 billion and average imports increase $4.2 billion to $388.7 billion.

Goods trade trends and broader U.S. impact

Goods exports decrease $4.0 billion to $206.9 billion in June, with exports on a Census basis down $3.8 billion. Industrial supplies and materials decline $3.3 billion, including a $5.7 billion drop in crude oil and a $1.6 billion fall in fuel oil, while nonmonetary gold rises $3.4 billion.

Imports of goods decrease $7.9 billion to $309.0 billion in June, helping drive the narrower monthly deficit. Even with the June improvement, average exports are still $35.6 billion higher than in June 2025 and average imports are $42.1 billion higher, showing that trade flows remain elevated over the past year.

Year to date, the goods and services deficit decreases $189.3 billion, or 33.8 percent, from the same period in 2025. Over that period, exports increase $198.3 billion, or 11.7 percent, while imports increase $9.0 billion, or 0.4 percent, pointing to a materially stronger export contribution to the U.S. trade position in 2026.

In our earlier coverage of the multi-state lawsuit challenging the Trump administration’s Section 301 tariffs, we explained how a coalition of Democratic attorneys-general sought to block new duties of roughly 10% to 12.5% applied to imports from more than 60 trading partners. We also highlighted arguments that the administration used Section 301 to preserve a broad tariff regime after earlier tariff authorities faced setbacks in court, potentially raising costs for U.S. businesses and consumers and adding uncertainty for trade-dependent companies.

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