US trade deficit drops to $29.4 billion
The US trade deficit has narrowed significantly, with the latest figure coming in at $29.4 billion. This represents a 39% drop from the previous month’s $48.1 billion gap.
The deficit has been declining since earlier in 2025, when it stood at $136 billion. It is now under $30 billion, a level not seen in some time.
The sharp decline in the trade deficit has been attributed to the impact of tariffs. The US has lived with a massive trade deficit for decades, but the gap has suddenly narrowed, and much faster than many expected.
The movement in the trade balance is significant, with the deficit cut in half from the expected $58 billion. The actual figure of $29.4 billion is a substantial drop from the $136 billion seen in March.