The US goods trade deficit narrowed more than expected in June 2025, shrinking by 10.8% to $86 billion from the previous month. This reduction marks the deficit's lowest level in nearly two years, reflecting a broad decline in imports, particularly consumer goods, which fell to their lowest level since 2020. Imports decreased by 4.2%, while exports dipped slightly by 0.6%, with gains in some sectors offset by a drop in industrial supplies. Year-over-year trends show imports down 2.5% and exports up 3.6%. The shrinking deficit is anticipated to provide a boost to the US second-quarter GDP. Additionally, the US trade deficit with China is projected to be at least $50 billion smaller this year. The deficit in June was approximately €74.5 billion, equivalent to the $86 billion figure reported in dollars.