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Tariffs Help Drive Trade Gap to Lowest Since 2020 as November U.S. Deficit Shrinks

Tariff-driven revenues complicate readings distorted by shutdown timing.

A bronze seal for the Department of the Treasury is shown at the U.S. Treasury building in Washington, U.S., January 20, 2023. REUTERS/Kevin Lamarque/File Photo
A drone view shows shipping containers at the Port of Montreal in Montreal, Quebec, Canada April 14, 2025. REUTERS/Carlos Osorio
A drone view shows shipping containers at the Port of Montreal in Montreal, Quebec, Canada April 14, 2025. REUTERS/Carlos Osorio
A cargo ship full of shipping containers departs the port of Oakland at the San Francisco Bay, California, U.S., August 4, 2025. REUTERS/Carlos Barria/File Photo

Overview

  • The U.S. trade deficit narrowed 10.9% to $52.8 billion in September, the smallest since mid-2020, with exports up 3.0% to $289.3 billion and imports up 0.6% to $342.1 billion.
  • Goods exports rose 4.9% to $187.6 billion, led by record consumer-goods shipments, while auto-related imports fell to their lowest level since November 2022.
  • The federal budget deficit fell to $173 billion in November from $367 billion a year earlier, as receipts hit a record $336 billion for the month.
  • Customs duties totaled $30.76 billion in November and $62.11 billion over the first two months of fiscal 2026, lifting revenues in the wake of sweeping tariff increases.
  • A 43-day government shutdown delayed data releases and some payments, and economists warn the September trade improvement was flattered by a jump in gold exports rather than a durable shift.