The U.S. trade deficit in goods and services narrowed to $29.4 billion in October – down from $48.1 billion the month before – and bringing the figure to the lowest monthly total since 2009, data from the Commerce Department showed on Thursday.
Under the Trump Administration and new tariff policies, Imports into the U.S. shrank by $11 billion to $331.4 billion in October, while exports rose by $7.8 billion to $302 billion from September. The difference between the total monthly import and export figures determines the deficit.
However, because of a surge in imports earlier this year as importers sought to bring items into the U.S. ahead of sweeping tariffs taking effect, the overall trade deficit from January to October increased $56 billion – or 7.7% –– this year compared to the same period in 2024.
Trade flows fluctuated wildly last year following President Donald Trump’s announcements that he was imposing far-reaching tariffs on goods from most countries around the world.
The trade deficit announcement Thursday came a day ahead of the Supreme Court’s decision on the tariff policies.
The country’s top court could issue a decision as soon as Friday on whether Trump has the authority to impose sweeping tariffs under the 1977 law, the International Emergency Economic Powers Act.
In a wide-ranging interview with the New York Times published Thursday, Trump suggested he may seek to repackage his tariffs as licensing fees, if the Supreme Court ultimately decides to invalidate his IEEPA tariffs.
