Core Viewpoint - The U.S. trade deficit narrowed more than expected in August, influenced by President Trump's tariffs, which disrupted international commerce [1][2]. Group 1: Trade Deficit Data - The U.S. trade deficit shrank to $59.6 billion in August, the narrowest gap since October 2023 [1]. - This represents a 24% reduction from July's deficit of $78.2 billion, with imports declining by 5.1% and exports rising by only 0.1% [2]. Group 2: Tariff Impact - President Trump expanded tariffs on U.S. trade partners in August, raising the effective tariff rate to 18% [3]. - The tariffs initially announced in April contributed to a widening trade deficit as imports increased prior to the August adjustments [3]. Group 3: Economic Growth Projections - The Federal Reserve of Atlanta projects a 4.2% increase in U.S. GDP for the third quarter, with exports contributing up to 0.78 percentage points [4]. - In the second quarter, GDP increased by 3%, surpassing the Dow Jones consensus of 2.3%, while exports and imports fell by 1.8% and 30.3%, respectively [4].