Trade Deficit Falls as U.S. Consumers Tighten Purse Strings

The U.S. trade deficit narrowed by more than $10 billion in July as consumer demand for imports weakened and the strong dollar weighed on the price of foreign goods.

The Commerce Department said on Wednesday that the U.S. trade deficit fell 12.6 percent in July to $70.6 billion, $10.2 billion lower than the prior month. The trade deficit has declined each month since March and is now at its lowest level since November 2021.

Imports declined by 2.9 percent to $329.9 billion in July. Imports of consumer goods fell by $7.4 billion, including a $3 billion decline in pharmaceuticals and a $900 million decline in imported toys, games, and sporting equipment.

Imports of industrial supplies and materials decreased $1.8 billion. Imports of crude oil increased by $1 billion while imports of other petroleum products fell by $700 million.

Automotive vehicles, parts, and engines increased $1.8 billion. Passenger car imports rose by $600 million.

Exports climbed 0.2 percent to $259.3 billion.

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