WASHINGTON (AP) — The U.S. trade deficit shrunk slightly in June, as did the politically sensitive trade deficit with China, the principal target of President Donald Trump’s tariffs.

The Commerce Department said Friday that the gap between the goods and services the U.S. buys and what it sells abroad fell 0.3% to $55.2 billion in June from May. Exports declined 2.1% to $206.3 billion. Imports also fell 1.7% to $261.5 billion.

The Commerce Department report comes less than 24 hours after Trump escalated trade hostilities again, announcing the U.S. will apply a new tariff of 10% on about $300 billion worth of products from China beginning Sept. 1. Trump has sought to reduce America’s persistent trade deficit.

The deficit in the trade of goods with China fell 7.5% to $30 billion.