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flag U.S. trade deficit hit record low in Q2 2025 due to sharp import drop and policy shifts.

flag The U.S. current account deficit shrank by 42.9% to $251.3 billion in the second quarter of 2025, the largest quarterly decline on record, according to the Bureau of Economic Analysis. flag The drop was driven by a $184.5 billion fall in goods imports, including reductions in consumer goods, industrial supplies, and nonmonetary gold, and a $11.3 billion rise in goods exports. flag Services exports and imports also increased, while primary income payments rose faster than receipts. flag The deficit now stands at 3.3% of GDP, the lowest since late 2023, down from 5.9% in the first quarter. flag The shift follows policy changes, including tariffs announced by former President Trump, and reflects ongoing volatility in global trade flows.

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