Trade deficit drops as tariffs take effect

The U.S. trade deficit fell by nearly 24% in August as President Trump's sweeping global tariffs pushed imports lower.

- JOSH BOAK

THE PORT of Long Beach has experienced a drop in the movement of containers holding winter apparel, kitchen appliances and toys.

ALLEN J. SCHABEN Los Angeles Times

In a report delayed for more than seven weeks by the federal government shutdown, the U.S. Commerce Department said Wednesday that the gap between what the United States buys from other countries and what it sells them fell to $59.6 billion in August, from $78.2 billion in July.

Imports of goods and services dropped 5% to $340.4 billion in August from July when U.S. companies were stocking up on foreign products before Trump finalized taxes on products from almost every country. Those levies went into effect Aug. 7.

U.S. exports blipped up 0.1% in August to $280.8 billion.

Trump, charging that America's persistent trade deficits mean that other countries have taken advantage of the U.S., has overturned decades of U.S. policy in favor of free trade, slapping double-digit tariffs on imports from most countries and targeting specific products, including steel, copper and autos, with their own levies.