Overview
- The gap narrowed 39% to $29.4 billion in October, the smallest since June 2009 and far below forecasts near $59 billion, with the release delayed by a 43-day government shutdown.
- Imports fell 3.2% to $331.4 billion as goods purchases dropped to the weakest since June 2023, led by a $14.0 billion slide in consumer goods driven by a $14.3 billion plunge in pharmaceuticals.
- Exports rose 2.6% to a record $302.0 billion, boosted by nonmonetary gold and other precious metals, and both services exports and services imports reached all-time highs.
- Economists link the import decline to President Donald Trump’s tariffs and earlier front-loading, while capital-goods purchases such as computers and telecom equipment increased on AI-related investment.
- A Supreme Court decision on tariff authority is pending and could reset duties and liabilities, while Canada reported a smaller-than-expected C$583 million October deficit with record exports to non-U.S. partners.