US trade deficit narrows slightly in September as imports hit record high
The US trade deficit narrowed 0.7 per cent to US$105.0 billion in September, the Commerce Department reported, even as imports rose to a record US$426.6 billion. Robust consumer spending and an artificial intelligence investment boom drove domestic demand, while trade has not contributed to GDP grow
The US trade deficit narrowed slightly in September even as robust domestic demand boosted imports to a record high, the Commerce Department's Bureau of Economic Analysis and Census Bureau reported on Wednesday (4 November).
The trade shortfall contracted 0.7 per cent to US$105.0 billion (HK$819 billion), the agencies said. Economists polled by Reuters had forecast a deficit of US$108.0 billion.
Despite President Donald Trump's aggressive tariffs, the trade deficit has remained large. The government estimated last week that imports subtracted 2.64 percentage points from gross domestic product growth in the third quarter, the largest subtraction since the first quarter of 2025, when businesses were front-loading orders after Trump's sweeping tariffs.
The economy grew at a 3.4 per cent annualised rate in the July–September quarter, the government said in its advance estimate of GDP last week. Trade has not contributed to GDP growth for four straight quarters. Resilient consumer spending and an artificial intelligence investment frenzy account for the strength in domestic demand, according to the report.
Imports increased 1.2 per cent to US$426.6 billion in September, a record high. Goods imports rose 1.3 per cent to an all-time high of US$346.9 billion. Exports advanced 1.9 per cent to US$321.5 billion. Goods exports increased 2.5 per cent to US$211.0 billion.