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Trade Deficit Plummets 42.9% in Second Quarter Under Trump’s Reciprocal Tariffs
['Craig Bannister', 'Managing Editor']
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On the second day of the second quarter, President Donald Trump announced “reciprocal tariffs” on goods from countries charging exorbitant tariffs on U.S. exports.
By the quarter’s end, the U.S. trade deficit shrank by 42.9%, the U.S. Bureau of Economic Analysis (BEA) reported Tuesday.
The decrease in the trade deficit was primarily driven by a $11.3 billion increase in goods exported and a $184.5 billion decline in goods imported:The U.S. trade deficit fell from $439.8 billion to $251.3 billion.
Exports of services increased $2.1 billion, but imports of services increased $2.8 billion.
Additionally, the total trade deficit reported for the first quarter was revised down by $10.4 billion in Tuesday’s BEA report.
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