US trade deficit narrowed in August

The narrowing of the US trade deficit was expected, given trade policy changes, and it supports the view that trade will be negligible for growth in the third quarter, writes KPMG US Senior Economist Meagan Schoenberger.

The United States' (US) trade deficit narrowed by 23.8 percent in August to $59.6 billion, reversing a jump in July. A -5.1 percent drop in imports drove the narrowing, as new trade policy changes came online in August, including the bulk of announced Liberation Day tariffs. Wholesalers drained inventories to compensate for lower imports. The headline data masks some of the gross domestic product (GDP) implications of trade because it does not account for changes in prices or nonmonetary g...

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Authors: Meagan Schoenberger

Published Date: 20 November 2025