The US trade deficit in goods and services narrowed by 5.6% in June 2026 to $73.3 billion from the prior month, led by a 1.8% decline in imports and a 0.9% fall in exports, marking the first monthly drop in imports this year [1, 2, 3, 4, 5, 6]. On an inflation-adjusted basis, the merchandise trade deficit narrowed to $94.5 billion in June [1, 2, 6].
US imports fell to $388 billion, driven by declines in computers, peripherals, and semiconductors. The broader capital goods category also dropped for the first time since September 2025 [1, 2, 5, 6]. Imports had surged earlier in 2025 and early 2026, fueled by strong AI investments, but that growth slowed significantly in June [1, 2, 5, 7]. Meanwhile, US exports totaled $314.7 billion. Industrial goods and materials exports declined, including a $57 billion drop in crude oil exports and a $16 billion drop in fuel exports, though non-monetary gold exports rose by $34 billion [6].
The US trade deficit with China rose 5.5% to $15.3 billion in June, while the deficit with Taiwan shrank by $4.5 billion and the deficit with South Korea widened by $3 billion in the first half of 2026 [4, 6].
Canada recorded record-high imports from the US at CAD 42.63 billion ($30.3 billion) in June, mainly due to increased imports of AI data center processors and computer components [7].
The Trump administration is pursuing new tariff measures after the Supreme Court struck down some import tariffs earlier in 2026, contributing to volatile trade data along with Middle East conflicts and AI investment trends [1, 2, 5]. US Treasury Secretary Scott Bessent said on August 4 that the US could imminently reach an agreement with Iran to reopen the Strait of Hormuz, which may help stabilize oil prices and ease trade disruptions. He stated, “We are negotiating with Iran. Today or tomorrow we may have a chance to reach an agreement to reopen the strait and move current conflict toward normalization.” He added, “I believe the strait will remain open” [5, 6].
Market expectations forecast a $73 billion deficit for June, while actual figures showed a slightly higher $73.3 billion deficit [3, 4].
Trade figures for July and ongoing negotiations around tariffs and Middle East tensions will be closely watched as the US navigates these evolving factors.
