Shipping containers are loaded onto a ship at the Port of Los Angeles in San Pedro, California, U.S., November 5, 2025. REUTERS/Mike Blake

WASHINGTON (Reuters) -The U.S. trade deficit narrowed more than expected in August as imports declined, but trade could still subtract from economic growth in the third quarter.

The trade gap contracted 23.8% to $59.6 billion, the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Wednesday. Economists polled by Reuters had forecast the trade deficit would ease to $61.0 billion.

Imports decreased 5.1% to $340.4 billion, while exports edged up 0.1% to $280.8 billion.

The report, which was initially scheduled for release on October 7, was delayed because of the recently ended 43-day shutdown of the government.

President Donald Trump's protectionist trade policy, marked by sweeping tariffs, has caused big swings in imports and the trade deficit, distorting the overall economic picture.

The U.S. Supreme Court early this month heard arguments on the legality of Trump's import duties, with justices raising doubts about his authority to impose tariffs under the 1977 International Emergency Economic Powers Act.

Trade sliced off a record 4.68 percentage points from gross domestic product in the first quarter before adding all that back to GDP in the April-June quarter. Estimates for third-quarter GDP growth are well above a 3.0% annualized rate.

The third-quarter GDP report was due in late October but delayed by the government shutdown. The economy grew at a 3.8% pace in the second quarter, with a smaller trade deficit being the key driver.

(Reporting by Lucia Mutikani; Editing by Paul Simao)