FX.co ★ US Current Account Deficit Narrows from Record High

In the second quarter of 2025, the United States saw a significant narrowing of its current account deficit, which diminished by $188.5 billion, or 42.9%, settling at $251.3 billion. This adjustment closely aligned with market predictions of a $250 billion deficit. The principal factor contributing to this reduction was a decrease in the goods deficit, which declined to $270.0 billion from $265.8 billion. This was partly due to businesses reducing imports after an initial surge to avoid newly imposed tariffs by the U.S. Presidential Administration. Meanwhile, the services surplus experienced a slight decrease, moving to $79.6 billion from $80.3 billion. Additionally, the primary account deficit increased, climbing to $7.7 billion from $2.6 billion, and the secondary income deficit expanded to $53.2 billion from $51.7 billion.