The Trump administration’s tariff policies have resulted in a significant reduction in the U.S. trade deficit in recent months. In October, the goods and services deficit narrowed by 39% month-over-month to $29.4 billion, well below the consensus estimate of $58.7 billion and marking the lowest level since 2009.
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Imports fell by 3.2% to $331.4 billion, while exports rose by 2.6% to $302 billion, according to the U.S. Bureau of Economic Analysis. The trade deficit is calculated by subtracting exports from imports.
U.S. Trade Flows Shift on Export Gains
During the month, exports were driven higher by industrial supplies and materials, nonmonetary gold, and other precious metals. Imports witnessed a decline in consumer and capital goods, including pharmaceutical preparations, computer accessories, and telecommunications equipment.
Notably, the U.S. had a trade surplus with the United Kingdom, Switzerland, and Brazil, while its deficit with Taiwan rose by $6.3 billion to $15.7 billion.
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