US goods trade deficit contracts sharply to $85.5 bn in August

The U.S. goods trade deficit narrowed 16.8% to $85.5 billion in August, sharply below forecasts, as imports dropped $19.6 billion to $261.6 billion while exports fell $2.3 billion to $176.1 billion. Volatile trade flows, driven by President Trumps tariffs, have weighed on growth. Third-quarter GDP estimates hover near 2.5%, down from 3.8% in April-June.