Bota Posted on 2025-08-07 10:14:00

Tariffs yield first results - US trade deficit with China shrinks by $4.6 billion

From Kristi Ceta

Tariffs yield first results - US trade deficit with China shrinks by $4.6

The U.S. trade deficit with China narrowed sharply in June as President Donald Trump's tariffs took full effect. The latest data showed Washington's deficit with Beijing fell by $4.6 billion to $9.4 billion, according to a report from the U.S. Bureau of Economic Analysis.

Exports increased by $3.1 billion to $10.1 billion, while imports decreased by $1.4 billion to $19.4 billion.

Currently, the United States has imposed a 30% tariff on Chinese imports, while China has maintained a 10% tax on American imports. However, Washington and Beijing are trying to negotiate a new trade deal. The latest talks between the parties ended in Stockholm last week, after a two-day meeting. Negotiating teams are moving closer to a second truce to prevent the return of higher tariffs on August 12.

China isn't the only country seeing a new trade reality due to tariffs. New data showed the U.S. trade deficit with Ireland narrowed by $6.5 billion, to $5.3 billion.

The United States also ran a trade deficit in June with Mexico and Vietnam, at $16.3 billion and $16.2 billion respectively, as well as with Taiwan, the EU, Japan, South Korea, India and other countries. President Trump imposed a 25% tariff rate on most Mexican exports and 20% on Vietnam.

Overall, the U.S. trade deficit fell by $11.5 billion, from $71.1 billion in May, to $60.2 billion in June, a 16% decline. This is the lowest level since September 2023.

Year-over-year, the US trade gap widened by about 38%, or $161.5 billion. Exports increased by about 5%, while imports expanded by about 12%.

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