Overview
- Commerce Department data show imports fell 5.1% to $340.4 billion in August as the new tariffs took effect, while exports were essentially flat at $280.8 billion.
- The monthly deficit narrowed to $59.6 billion, the smallest since October 2023, after July’s pre‑tariff stockpiling reversed.
- The Atlanta Fed says the smaller gap is a tailwind for third‑quarter growth, keeping its GDPNow estimate at 4.2%.
- Analysts report notable declines in machinery and industrial supplies purchases, warning of potential price pressures and reduced access to production inputs.
- Policy uncertainty persists as the Supreme Court reviews the president’s tariff authority and the administration rolled back duties on select food items last week.