The US Trade Deficit Is Narrowing Amid New Tariffs

• The US trade deficit in June decreased to $60.2 billion.
• The increase in tariffs on imports from 10% to 41% will take effect on September 7.
• The average tariff level in the US reached 18.3%, the highest since 1934.

This was reported by The Conversation, Asharq Al-Awsat.

The US trade deficit narrowed by 16% in June to $60.2 billion, which is a result of a sharp decrease in consumer goods imports. This is confirmed by the impact that President Donald Trump claims is being made on global trade through the introduction of new tariffs on imported goods.

According to data from the Bureau of Economic Analysis, exports of goods and services in June amounted to $277.3 billion, which is lower than the figure for May, while total imports decreased to $337.5 billion. The reduction in the trade deficit was a significant factor in the rebound of US gross domestic product in the second quarter, which grew by 3% year-on-year, after a decline of 0.5% in the first quarter.

Trump recently announced the increase in tariffs on imports from 10% to 41%, which will take effect on September 7. The average tariff level in the US increased to 18.3%, which is the highest indicator since 1934.

This increased tariff level, according to economists, may negatively impact business, despite the fact that the reduction in the deficit may create an illusion of stability in the economy.

Tags: USA/Economy