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Australia’s goods trade surplus narrowed to AUD 1.83 billion in August 2025, down sharply from a downwardly revised AUD 6.61 billion in July and well below market expectations of AUD 6.2 billion. This marked the smallest surplus since June 2018, driven by a sharp decline in exports. Exports plunged 7.8% month-over-month to a three-month low of AUD 41.86 billion in August, following a downwardly revised 2.5% increase in July. The decline was primarily driven by a 47.2% plunge in shipments of non-monetary gold to AUD 2.95 billion, while non-rural goods fell 2.5%. Among trading partners, shipments to the US slumped 44.3% due to the impact of newly imposed US tariffs, while those to the UK plunged 45.3%. In contrast, exports to China — Australia’s top trading partner — grew by 4.3%. On the imports side, inbound shipments rose 3.2% to a record AUD 40.03 billion, recovering from a revised 2.4% decline in July.