Marketplace · Tuesday, July 28, 2026
The United States' goods trade deficit shrank by about 4% in June compared to May. This narrowing occurred despite tariffs implemented by President Trump, which were intended to reduce the trade gap. Experts suggest that companies' efforts to restock inventories after geopolitical events contributed to the import fluctuations.
“It shrank about 4% from May, but "shrank" is a relative term, because we are still importing hundreds of billions of dollars more stuff than we export, despite President Trump's tariffs, some old, some new, that he has said would bring the trade gap down.”
“Anytime we get hit with some kind of unexpected shock, companies' first reaction basically is to go out and raise their, you know, stock piles. And in June, those companies were like, we are good, causing imports to fall and the trade deficit to narrow.”