The U.S. trade deficit has fallen about 24% as tariffs pushed imports lower, the Associated Press reports.
The Commerce Department released a report on Wednesday outlining how imports of goods and services dropped 5% to $340.4 billion in August from July as companies in the U.S. tried to stock up on foreign goods before President Donald Trump’s tariffs went into effect on Aug. 7.
U.S. exports increased 0.1% in August to $280.8 billion.
The trade deficit is up in 2025, totalling $713.6 billion through August.
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The report says the economy grew in the third quarter, but the tariffs are a major reason inflation remains above 2%.
