U.S. trade deficit with China tumbles as Trump’s tariffs take off

June data showed the U.S. deficit with China fell by $4.6 billion to $9.4 billion, according to a release from the U.S. Census Bureau and the U.S. Bureau of Economic Analysis. 

Exports increased by $3.1 billion to $10.1 billion and imports decreased by $1.4 billion to $19.4 billion. 

Currently, the U.S. has a 30% tariff on Chinese imports in place while China has kept a 10% tax on U.S. imports. 

However, the U.S. and China are trying to negotiate a new trade deal. Recent trade talks between the two countries wrapped up in Stockholm last week following a two-day meeting, and both negotiating teams appeared to be closing in on a second truce to prevent steeper tariffs from snapping back on August 12. 

China is far from the only country seeing seeing a new trade reality due to tariffs. The new data showed that the U.S. trade deficit with Ireland decreased by $6.5 billion to $5.3 billion. Trade with Switzerland changed in June from being in a surplus to a deficit of less than $0.1 billion. 

The U.S. also is in a trade deficit for the month with Mexico and Vietnam at a whopping $16.3 billion and $16.2 billion, respectively, as well as with Taiwan, the E.U., Japan, South Korea, India, and more. 

President Trump set a tariff rate with Mexico at 25% on most exports and Vietnam at 20%. 

Overall, the U.S. trade deficit dropped $11.5 billion from $71.1 billion in May to $60.2 billion in June, diminishing by 16% and reaching a new low since September 2023. 

Imports dropped in June by $12.8 billion compared to May while exports dropped by $1.3 billion. The goods deficit for the month decreased by $11.4 billion and the services surplus increased by $0.1 billion. 

Year-over-year, the U.S. trade deficit rose about 38%, or $161.5 billion. Exports increased about 5% and imports rose about 12%. 

—Joseph Zeballos-Roig contributed to this article.