Trade Policy

U.S. imports fell 5.1% in August after tariffs, sending the trade deficit down nearly 24% for the month, according to a Commerce Department report that was delayed more than seven weeks by the federal shutdown. Year-to-date (Jan–Aug 2025) the trade deficit totaled $713.6 billion, up 25% from a year earlier, and economists say the smaller August deficit could be a tailwind for Q3 GDP even as the administration last week lifted tariffs on a range of food items and faces a Nov. 5 Supreme Court hearing on the scope of emergency tariff authority.