Policy
US Trade Deficit Narrowed in June as Imports Fell Faster Than Exports
New York: The goods and services deficit fell 5.6% to $73.3 billion, with imports declining by $7.3 billion.
By Daniel Brooks · Economy & Public Policy Specialist · Published
The United States trade deficit narrowed in June as imports fell faster than exports, offering a modest improvement in the monthly external balance after a volatile spring.
The goods and services deficit declined by $4.4 billion to $73.3 billion, according to the Bureau of Economic Analysis and Census Bureau. Exports fell 0.9% to $314.7 billion, while imports declined 1.8% to $388.0 billion.
The change was driven mainly by goods. The goods deficit fell to $102.1 billion, while the services surplus increased by $0.5 billion to $28.8 billion.
Capital-goods trade shows the effect of investment timing
Imports of capital goods fell by $2.1 billion in June, with computer imports down $3.0 billion. Telecommunications equipment moved in the opposite direction, rising by $1.1 billion.
Those monthly swings matter because American companies have been making unusually large investments in computing and data-center infrastructure. Imports can jump when businesses receive servers, networking equipment or other capital goods, then fall in the following month without indicating a sudden change in the underlying investment plan.
Trade data are therefore becoming more closely connected to the AI infrastructure cycle and to the timing of large technology purchases.
Services remain a structural US strength
The services surplus rose to $28.8 billion in June. Financial services and travel exports increased, while imports of intellectual-property services also moved higher.
The contrast with the goods deficit reflects the structure of the American economy. The United States imports large quantities of manufactured products and consumer goods while exporting high-value services in finance, technology, intellectual property and professional activity.
For policymakers, that means trade policy focused only on merchandise can miss an important source of US export strength.
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Year-to-date figures look better, but monthly volatility remains high
Through June, the goods and services deficit was 33.8% lower than in the same period of 2025. Exports were up 11.7%, while imports were only 0.4% higher.
The three-month moving average tells a less dramatic story. The average deficit for the three months ending in June increased to $68.5 billion, illustrating how strongly tariff timing, inventory decisions and large capital purchases can distort individual months.
American businesses should expect trade data to remain noisy while companies adjust supply chains and purchasing schedules. The June narrowing is helpful for the headline balance, but the underlying commercial environment remains shaped by tariffs, geopolitical risk and strong demand for imported capital equipment.