In June 2025, the overall trade deficit of the United States decreased to $60.2 billion, a 16% reduction from the previous month, marking the lowest level since September 2023. The trade deficit with China plummeted to $9.5 billion, hitting a new low since February 2004, indicating that the tariff policies implemented by the Trump administration continue to reshape the global trade landscape.
According to data released by the U.S. Commerce Department’s Bureau of Economic Analysis on Tuesday, June’s total exports amounted to $277.3 billion, slightly lower than May, while imports decreased from $350.3 billion to $337.5 billion. The simultaneous reduction in goods and services deficits has become one of the main driving forces behind the GDP annual growth rate rebounding to 3.0% in the second quarter.
Specifically, the goods trade deficit dropped to $86 billion, reaching a new low in a year and a half. Imports decreased by 4.2% annually to $264.2 billion, reflecting a significant decrease in consumer goods and capital goods purchases, while exports remained relatively stable. This structural change is helping to support economic growth, reversing the drag caused by the surge in imports in the first quarter due to early purchasing by businesses and households.
A real-time financial column under the Financial Times pointed out that the significant reduction in the trade deficit has increased market expectations for a rate cut by the Federal Reserve.
Estimates from the Yale University Budget Experiment Lab show that the Trump administration plans to impose tariffs ranging from 10% to 41% on goods imported from several countries to the U.S. starting from August 7, raising the average U.S. tariff rate to 18.3%, the highest since 1934. This wave of tariff pressure has already had a tangible impact on import structures and trade data.
Tariffs may lead to price increases, prompting some multinational companies to reassess their supply chain layouts; meanwhile, the U.S. Trade Representative emphasizes that the policy goal is to promote the revival of domestic manufacturing.
In June, the U.S. only imported $18.9 billion worth of goods from China, hitting the lowest record since the 2009 financial crisis. The cumulative reduction in the U.S.-China trade deficit over the past five months has exceeded $22.2 billion, with an overall decrease of 70%.
According to Reuters, U.S. and Chinese trade representatives met last week in Sweden and proposed to President Trump to postpone the tariff deferral deadline originally set for August 12 to avoid tariff rates bouncing back to over 100%.