US Goods Trade Deficit Narrows Sharply in August

2025-09-25 12:37 By Dongting Liu 1 min. read

The US trade deficit in goods narrowed by $17.3 billion from the previous month to $85.5 billion in August 2025, well below the market expectations of $95.65 billion, according to an advance estimate.

Imports fell 7.0% month-on-month to $261.6 billion, driven by declines in industrial supplies (-18.9% to $49.4 billion), foods and beverages (-8.7% to $16.9 billion), consumer goods (-6.4% to $55.1 billion), and capital goods (-4.4% to $92.0 billion).

In contrast, imports rose for other goods (6.9% to $13.7 billion) and automotive vehicles (1.7% to $34.5 billion).

Meanwhile, exports fell 1.3% to $176.1 billion, weighed down by declines in industrial supplies (-1.4% to $59.3 billion), consumer goods (-6.8% to $21.2 billion), other goods (-2.1% to $8.5 billion), and automotive vehicles (-3.0% to $12.7 billion), partly offset by gains in capital goods (1.1% to $60.6 billion) and foods and beverages (0.3% to $13.8 billion).



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