US goods trade deficit drops sharply in August

Business Sep 25, 2025

Good news for the US economy: the goods trade deficit dropped sharply in August, landing at $85.5 billion—a 16.8% decrease and much better than experts predicted.
The main reason? Imports fell by nearly $20 billion, while exports only slipped a little.

Trade policies and their impact on growth

The US economy's ups and downs lately are tied to shifting trade policies, especially tariffs from the Trump era.
Earlier this year, a smaller trade gap helped boost growth to 3.8%, but with ongoing policy effects, economists now expect third-quarter growth closer to 2.5%.
It's a reminder that global trade moves can still make a big difference for how fast things grow at home.