August trade deficit falls to $59.6 billion as imports decline

WASHINGTON >> The U.S. trade deficit narrowed more than expected in August as businesses imported fewer goods against the backdrop of higher tariffs, a trend that, if sustained, could be a potential tailwind for economic growth in the third quarter.

But a drop in consumer goods imports to levels last seen early in the COVID-19 pandemic and a decline in capital goods imports, including computer accessories and telecommunications equipment, reported by the Commerce Department on Wednesday, could signal slower consumer and business spending last quarter.

President Donald Trump has imposed sweeping tariffs on the nation’s trade partners, accusing them of taking advantage of the United States. The U.S. Supreme Court heard arguments on the legality of Trump’s import duties early this month, wi