Blab News
U.S. Trade Deficit Narrows to $73.3 B in June, Services Surplus Expands
The latest trade figures, released on August 4, paint a picture of a U.S. balance of trade inching closer to equilibrium. June’s goods and services deficit fell to $73.3 billion—a $4.4 billion drop from May’s $77.6 billion—thanks to a tightening in imports and a widening in services.
Exports edged lower, totalling $314.7 billion, down $2.9 billion from the previous month, while imports slipped to $388.0 billion, a $7.3 billion decline. The goods deficit shrank to $102.1 billion, a $3.9 billion improvement, while the services surplus grew by $0.5 billion to $28.8 billion.
Year‑to‑date, the combined goods and services shortfall has fallen by $189.3 billion, a 33.8 percent drop compared with the same period in 2025. Exports have risen 11.7 percent to $416.9 billion, whereas imports have grown only 0.4 percent to $1.01 trillion. Three‑month moving averages for June show a $68.5 billion deficit, with average exports of $320.2 billion and average imports of $388.7 billion—higher than the 2025 averages by $6.6 billion, $35.6 billion, and $42.1 billion, respectively.
Goods exports in June totaled $206.9 billion, down $4.0 billion from May. On a Census‑basis, the decline was $3.8 billion, concentrated in industrial supplies and materials ($3.3 billion), crude oil ($5.7 billion), fuel oil ($1.6 billion), and computers ($1.1 billion). Nonmonetary gold exports rose $3.4 billion, while other goods, capital goods, and computers saw modest decreases. Net balance‑of‑payments adjustments slipped $0.2 billion.
Services trade benefited from a $1.1 billion jump in exports, reaching $107.8 billion. The gains came from financial services ($0.5 billion) and travel ($0.4 billion). Imports of goods fell $7.9 billion to $309.0 billion, with capital goods, computers, and consumer goods all down. Telecommunications equipment imports rose $1.1 billion. Imports of services increased $0.6 billion to $79.0 billion, driven by higher charges for intellectual property, transport, and insurance services, while travel services fell $0.4 billion.
In real terms, measured in 2017 dollars, the goods deficit contracted $5.3 billion to $94.5 billion, a 5.3 percent decline. Real goods exports fell $1.4 billion to $153.6 billion, and real goods imports dropped $6.7 billion to $248.1 billion.
Revisions to May data were modest: goods exports were nudged up $0.3 billion, services exports down $0.4 billion; goods imports were lowered $0.2 billion, and services imports rose $0.2 billion.
On a country‑by‑country basis, June saw surpluses in the Netherlands ($7.2 billion), South and Central America ($5.6 billion), Hong Kong ($3.2 billion), Switzerland ($2.9 billion), the United Kingdom ($2.2 billion), Singapore ($1.8 billion), Saudi Arabia ($1.8 billion), Brazil ($1.7 billion), Australia ($1.3 billion), and Belgium ($0.9 billion). Deficits were reported for Vietnam ($21.6 billion), Mexico ($20.3 billion), China ($15.3 billion), Taiwan ($14.9 billion), the European Union ($10.9 billion), South Korea ($7.4 billion), Canada ($7.2 billion), Germany ($7.1 billion), India ($4.5 billion), Malaysia ($4.4 billion), Japan ($3.3 billion), Ireland ($2.7 billion), Italy ($2.5 billion), France ($1.5 billion), and Israel ($1.2 billion). Switzerland’s balance swung from a $2.3 billion deficit in May to a $2.9 billion surplus in June, driven by a $4.5 billion rise in exports and a $0.7 billion drop in imports. The Taiwan deficit fell $4.5 billion to $14.9 billion, while the South Korea deficit climbed $3.0 billion to $7.4 billion.
The data suggest that the U.S. trade deficit is narrowing, largely due to a stronger services surplus and a modest decline in goods imports. The next trade data release is scheduled for September 3, 2026.
Exports edged lower, totalling $314.7 billion, down $2.9 billion from the previous month, while imports slipped to $388.0 billion, a $7.3 billion decline. The goods deficit shrank to $102.1 billion, a $3.9 billion improvement, while the services surplus grew by $0.5 billion to $28.8 billion.
Year‑to‑date, the combined goods and services shortfall has fallen by $189.3 billion, a 33.8 percent drop compared with the same period in 2025. Exports have risen 11.7 percent to $416.9 billion, whereas imports have grown only 0.4 percent to $1.01 trillion. Three‑month moving averages for June show a $68.5 billion deficit, with average exports of $320.2 billion and average imports of $388.7 billion—higher than the 2025 averages by $6.6 billion, $35.6 billion, and $42.1 billion, respectively.
Goods exports in June totaled $206.9 billion, down $4.0 billion from May. On a Census‑basis, the decline was $3.8 billion, concentrated in industrial supplies and materials ($3.3 billion), crude oil ($5.7 billion), fuel oil ($1.6 billion), and computers ($1.1 billion). Nonmonetary gold exports rose $3.4 billion, while other goods, capital goods, and computers saw modest decreases. Net balance‑of‑payments adjustments slipped $0.2 billion.
Services trade benefited from a $1.1 billion jump in exports, reaching $107.8 billion. The gains came from financial services ($0.5 billion) and travel ($0.4 billion). Imports of goods fell $7.9 billion to $309.0 billion, with capital goods, computers, and consumer goods all down. Telecommunications equipment imports rose $1.1 billion. Imports of services increased $0.6 billion to $79.0 billion, driven by higher charges for intellectual property, transport, and insurance services, while travel services fell $0.4 billion.
In real terms, measured in 2017 dollars, the goods deficit contracted $5.3 billion to $94.5 billion, a 5.3 percent decline. Real goods exports fell $1.4 billion to $153.6 billion, and real goods imports dropped $6.7 billion to $248.1 billion.
Revisions to May data were modest: goods exports were nudged up $0.3 billion, services exports down $0.4 billion; goods imports were lowered $0.2 billion, and services imports rose $0.2 billion.
On a country‑by‑country basis, June saw surpluses in the Netherlands ($7.2 billion), South and Central America ($5.6 billion), Hong Kong ($3.2 billion), Switzerland ($2.9 billion), the United Kingdom ($2.2 billion), Singapore ($1.8 billion), Saudi Arabia ($1.8 billion), Brazil ($1.7 billion), Australia ($1.3 billion), and Belgium ($0.9 billion). Deficits were reported for Vietnam ($21.6 billion), Mexico ($20.3 billion), China ($15.3 billion), Taiwan ($14.9 billion), the European Union ($10.9 billion), South Korea ($7.4 billion), Canada ($7.2 billion), Germany ($7.1 billion), India ($4.5 billion), Malaysia ($4.4 billion), Japan ($3.3 billion), Ireland ($2.7 billion), Italy ($2.5 billion), France ($1.5 billion), and Israel ($1.2 billion). Switzerland’s balance swung from a $2.3 billion deficit in May to a $2.9 billion surplus in June, driven by a $4.5 billion rise in exports and a $0.7 billion drop in imports. The Taiwan deficit fell $4.5 billion to $14.9 billion, while the South Korea deficit climbed $3.0 billion to $7.4 billion.
The data suggest that the U.S. trade deficit is narrowing, largely due to a stronger services surplus and a modest decline in goods imports. The next trade data release is scheduled for September 3, 2026.
