U.S. goods trade deficit shrinks 4.2% in June as imports tumble

The U.S. goods trade deficit narrowed by 4.2% in June to $101.5 billion, driven by a 2.6% drop in imports that outpaced a 1.8% decline in exports, according to Commerce Department data released July 28, 2026. The shortfall fell from $105.9 billion in May, though it slightly exceeded the $100 billion median estimate from a Bloomberg economist survey. The figures are not adjusted for inflation. Exports of industrial supplies, including crude oil and petroleum products, fell 4.4%, while consumer goods and automotive vehicles rebounded. Imports of capital goods—covering computers, semiconductors, and telecommunications equipment—dropped for the first time since September, though they remained 37.4% higher year-over-year. The trade imbalance has seesawed in recent months amid geopolitical tensions, including the resumption of hostilities between the U.S. and Iran, which boosted demand for U.S. petroleum exports. Companies have also been stockpiling goods due to supply chain delays and concerns over new tariffs, following President Donald Trump’s announcement of replacement duties after a Supreme Court ruling in February struck down previous tariffs. Retail inventories were little changed in June, while wholesale inventories rose 0.3%. The trade and inventory data will feed into the government’s first estimate of second-quarter GDP, scheduled for release on July 30. The Federal Reserve Bank of Atlanta’s GDPNow model had previously projected that net exports would subtract 1.35 percentage points from GDP growth. Separate data from the Bureau of Labor Statistics showed U.S. import prices increased 0.3% in June, while export prices fell 0.6%. More comprehensive June trade figures, including the services balance, are due August 4.