Summary
- The United States Department of Commerce announced that the U.S. trade deficit for June, affected by tariffs, decreased by 16% from the previous month to $60.2 billion.
- Especially, the goods trade deficit decreased by 10.8%, marking the lowest since September 2023.
- Such a reduction in the trade deficit contributed greatly to an increase in the U.S. GDP growth rate for the second quarter.
Steep drop in consumer goods imports as tariffs begin
Due to the imposition of tariffs, imports of consumer goods into the United States sharply declined, resulting in the U.S. trade deficit for June falling by 16% to $60.2 billion (approximately ₩83.8 trillion).
On the 5th (local time), the United States Department of Commerce announced that the total trade deficit for June, including goods and services, had decreased by 16% to $60.2 billion. Notably, the goods trade deficit dropped by 10.8%, reaching its lowest level since September 2023.
Exports of goods and services fell from $278 billion in May to $277.3 billion, while imports declined from $350.3 billion to $337.5 billion.
This reduction in the trade deficit made a significant contribution to the rebound in U.S. gross domestic product (GDP) for the second quarter, as reported last week. This marked a reversal from the record-high trade deficit and surge in imports in the first quarter, as U.S. companies made preemptive purchases in anticipation of tariffs.
Consequently, the U.S. economy grew at an annual rate of 3.0% in the second quarter, rebounding from -0.5% growth in the first quarter.
According to the Yale Budgeting Laboratory, the overall U.S. tariff rate had hovered between 2% and 3% for decades, but as of August 7, tariff rates on imports rose between 10% and 41%, causing the average rate to jump to 18.3%, the highest since 1934.
Kim Jeong-a, guest reporter kja@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
