US Trade Deficit Shrinks by 11.9% in October as Imports Decline

The narrowing trade gap, driven by falling imports, could boost GDP growth but raises questions about future trade policies under President-elect Trump.

• The US trade deficit fell to $73.8 billion in October, down from a revised $83.8 billion in September, exceeding economists' expectations.
• Imports decreased by 4%, the largest drop since late 2022, with declines in capital goods, consumer goods, and petroleum imports.
• Exports also declined by 1.6%, with notable decreases in shipments of automobiles, industrial supplies, and capital goods.
• Economists suggest the smaller trade gap could support GDP growth, though reduced export volumes may weigh on industrial production and services output.
• President-elect Donald Trump has pledged aggressive trade policies, including new tariffs on Mexico, Canada, and China, raising uncertainty about future trade dynamics.

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