The U.S. trade gap narrowed in June, government data showed Tuesday, as imports pulled back more than exports while businesses grappled with President Donald Trump’s tariffs on allies and competitors alike.

The overall trade deficit in the world’s biggest economy narrowed by 16% to $60.2 billion, down from a revised $71.7 billion figure in May, the Department of Commerce said.

The narrowing was more than analysts expected but largely reflected a drop in goods imports — including consumer goods as Trump’s wide-ranging tariffs added to businesses’ costs of bringing in foreign products.

The goods deficit with China dropped by $4.6 billion to $9.4 billion in June.

The drop in imports came as those of consumer goods decreased $8.4 billion, while those of industrial supplies and materials fell by $2.7 billion. Imports of autos and parts also dropped by $1.3 billion.

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