High tariffs on China-made products drove U.S. imports from the world’s second-largest economy to a 16-year low in June — yet the dramatic shift hasn’t put a big dent in America’s overall trade deficit.

Key Takeaways The U.S. trade deficit fell for the third month as President Donald Trump’s tariff policies began taking hold.Census Bureau data showed that both imports and exports declined in June. Economists said that the recent decline mainly reflects normalization in international trade as businesses work through the imported inventory they

The deterioration in goods trade is likely to have weighed heavily on Canada’s economy in the April to June period, as shipments of items from cars to metals targeted by protectionist U.S. policies slumped. And while exports to the U.S., by far Canada’s largest market, advanced in June, that was due mainly to higher oil prices.