The US trade deficit edged down in June as exports and imports declined

WASHINGTON (Reuters) – The US trade deficit edged down in June, as exports and imports dipped, indicating that US President George W. Bush's "America's First" policy is limiting trade flows.

The trade deficit fell 0.3 percent to $ 55.2 billion, the Commerce Department said Friday.

The ministry revised down slightly the May data, showing that the trade gap was widening from $ 55.5 billion to $ 55.3 billion at its previous reading.

Economists polled by Reuters expected the deficit to fall to $ 54.6 billion in June.

The trade deficit with China fell by 0.8% to $ 30 billion, while imports fell by 0.7%. Exports to China remained unchanged in June.

Trade tensions between China and the United States have caused sharp fluctuations in the trade deficit as import-export companies try to stay out of the tariff war between the two largest economies in the world. The trade deficit with Mexico reached its highest level in June.

Commodity imports fell 2.2% to $ 212.3 billion. Imports of consumer goods fell $ 0.9 billion due to a $ 1.4 billion decline in mobile phone imports.

Crude oil imports declined by $ 1.4 billion as a result of falling oil prices.

Commodity exports fell 2.8% to $ 137.1 billion. Exports of consumer goods fell by $ 1.9 billion and exports of capital goods and automobiles declined.

(Reuters)