July 6 (UPI) -- The U.S. trade deficit dropped to $43.1 billion in May, shedding 6.6 percent from April and marking its lowest level of President Donald Trump's 18 months in office.
The Commerce Department said Friday the May deficit -- the difference between what America sells and what it buys in foreign markets -- fell as exports climbed 2 percent to a record $215.3 billion. Imports were up 0.4 percent to $258.4 billion.
The trade deficit in May reached its lowest level since October 2016, near the end of the Obama administration.
The United States ran a $22.7 billion surplus in the trade of services like education and banking. That was offset, though, by a $65.8 billion deficit in the trade of goods.
The May figures show billions in surpluses with South and Central America, Hong Kong, Singapore, Brazil, Britain and Saudi Arabia, while deficits were recorded elsewhere, like China, the European Union, Mexico and Canada.
The data came the same day the United States and China started a trade war by imposing significant tariffs on each other's exports.
Twenty-five percent U.S. tariffs affect industrial machinery, office equipment, electronics, medical devices and vehicles from China. Beijing's taxes hit U.S.-made aircraft, cars, computer chips, fuel, pork and soybeans.