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U.S. Trade Deficit Shrinks to Smallest Since 2020

Economists say volatile gold flows and tariff timing effects cloud how much lasting progress the figures represent.

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

  • Commerce Department data show the September trade gap narrowed 10.9% to $52.8 billion, with exports up 3.0% to $289.3 billion and imports up 0.6% to $342.1 billion, the lowest deficit since June 2020 after a shutdown-delayed release.
  • Analysts note an unusually large surge in nonmonetary gold exports and front‑loaded trade around tariff hikes, warning the improvement may prove temporary.
  • The White House hails the figures as evidence the tariff agenda is working, while reporting points to ongoing legal challenges to the administration’s tariff authorities.
  • Treasury reports the November federal deficit fell to $173 billion as customs duties helped lift monthly receipts to a record, including $30.76 billion in duties.
  • Statistics Canada says Canada recorded a C$153 million September surplus as exports rose 6.3% and imports fell 4.1%, aided by aircraft and unwrought gold shipments and weaker inbound flows.