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A vehicle carrying Toyota pickup trucks drives into a California Highway Patrol inspection station after entering the U.S. from Mexico, in Otay Mesa, Calif., in 2025PATRICK T. FALLON/AFP/Getty Images
The U.S. trade deficit narrowed in June, but the trend is unlikely to be sustained amid strong domestic demand that is being satiated with imports.
The trade shortfall contracted 5.6 per cent to US$73.3-billion, the Commerce Department’s Bureau of Economic Analysis and Census Bureau said on Tuesday. Economists polled by Reuters had forecast the deficit at US$73.0-billion.
The government reported last week that the trade deficit widened further in the second quarter, subtracting a full percentage point from gross domestic product.
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The economy grew at a 1.5-per-cent annualized rate last quarter, though domestic demand, driven by consumers and business ramping up spending on artificial intelligence infrastructure, increased at its fastest pace since the first quarter of 2023.
Imports dropped 1.8 per cent to US$388-billion in June. Goods imports fell 2.5 per cent to US$309 billion. Exports slipped 0.9 per cent to US$314.7-billion. Goods exports declined 1.9 per cent to US$206.9-billion.