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.
Still, the U.S. trade deficit is up so far in 2025, coming in at $713.6 billion through August, up 25% from $571.1 billion in January-August 2024.
A drop in imports and the trade deficit is good for economic growth because foreign products are subtracted from the nation’s gross domestic product. GDP is the output of a nation’s goods and services.
Tariffs, which Trump says will protect U.S. industries and lure factories to America, are paid by importers who typically attempt to pass along the higher cost to their customers. Economists say Trump’s tariffs are one reason U.S. inflation remains stubbornly above the Federal Reserve’s 2% target.
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AP Writer Josh Boak contributed to this report.
