WASHINGTON (AP) — The U.S. trade deficit declined in July, including the gap with China that has been the focus of President Donald Trump's tariffs.

The Commerce Department says that the gap between the goods and services the U.S. buys and what it sells abroad fell 2.7% to $54 billion in July from June. Exports rose 0.6% to $207.4 billion, while imports ticked down 0.1% to $261.4 billion. Compared to a year ago, the average trade gap has increased $7 billion.

Trade with China tumbled in July as U.S. imports have been intensifying. The trade gap fell $500 million in July to $29.6 billion, as imports to the United States fell more sharply than a decline in exports. Trump has been taxing Chinese imports in hopes of reducing the trade gap.